May 9, 2004 by Canadian Underwriter
Toronto-based GCAN insurance company has seen its “A” (excellent) rating affirmed by A.M. Best, a sign of “the continuation of the good results we’ve had for five years”, says president Andy Henke.
Henke says the company’s focus on commercial industrial risks has paid off and will continue in the future. GCAN was purchased last year by a group of Toronto investors, including senior management, and the A.M. Best affirmation means it remains one of the highest-rated Canadian-owned companies, Henke adds.
In fact, 2003 saw GCAN post net income of $12.7 million, up from $10.6 million the year prior. The company has managed to post an underwriting profit in each of the last five years, and has consistently kept its combined ratio below 100%, last year posting 87.8%. After-tax return on equity for 2003 was 16.38%, well above the industry average.
Those results prompt A.M. Best to note, “GCAN’s success lies with its experienced management team and its commitment to sound underwriting practices.” The outlook for GCAN’s rating is stable.