Economical subs downgraded on Ontario auto losses

Rating agency A.M. Best has downgraded the public data ratings of several Economical Insurance Group subsidiaries. The ratings of Economical Mutual Insurance Company, Langdon Insurance Company and Perth Insurance Company have been lowered to B+ from B++. The rating of Missisquoi Insurance Company has been affirmed at B++, as has the B+ ratings of Federation Insurance Company of Canada and Waterloo Insurance Company.
A.M. Best says the downgrades come as a result of the subs’ persistently poor operating results over the past two years, largely on Ontario auto losses. However, the adequate capital position of the subs is cited as an offsetting factor.
In affirming the ratings of Federation and Waterloo, A.M. Best says this reflects their adequate capitalization and balance sheet strength despite poor results in the Ontario auto market. Missisquoi’s rating is the result of its strong performance in the Quebec market, the healthiest private auto market in Canada.