Loyalist withdrawal leads to downgrade

The withdrawal of Loyalist Insurance Company from the Ontario auto market has prompted A.M. Best to lower the company’s public data rating to B- from B.
The rating agency notes that last year Ontario auto accounted for 60% of Loyalist’s direct written premiums and points to the company’s eroded capital position as a result of operating losses in making the downgrade. Loyalist, an Ontario-based company, lost $770,000 last year. For the twelve months ending June 30, 2002, the company had lost $1.28 million.
Best notes further that the rating is based on publicly available information rather than the senior management interviews and greater access to information that are part of an interactive rating.