Coachman downgraded despite SGI ratings affirmation: A.M. Best

While parent company Saskatchewan Government Insurance (SGI) says its “A-” (excellent) rating affirmed by A.M. Best, its Ontario subsidiary Coachman Insurance Co. was downgraded to “B-” (fair) from “B”.
SGI’s other subsidiaries, SGI Canada Insurance Services Ltd. (SCISL) and The Insurance Co. of PEI, saw their “B+” (very good) ratings affirmed. However, like Coachman, SCISL maintains a negative ratings outlook.
A.M. Best credits SGI, SCISL and ICPEI with “solid financial strength, operating performance, strong business profile and position within their respective markets”. The companies’ centralized underwriting and investment management are also cited as positive factors.
Coachman was downgraded due to its weak capital position and continued poor operating performance, as well as its concentration of risk in Ontario auto. However, A.M. Best does note the company’s stronger performance over the last 18 months, as well as the strong support its receives from its parent. Also noted are the company’s moves to diversify into commercial and personal property. “A.M. Best anticipates that capital will continue to be strained until Coachman attains operating profitability.”