Mutual Fire Insurance Company of British Columbia receives ‘A-‘ financial strength rating

A.M. Best has assigned a financial strength rating of ‘A-‘ (Excellent) and issuer credit rating of ‘a-‘ to The Mutual Fire Insurance Company of British Columbia.

The outlook for the ratings is stable.

“The ratings and outlook for Mutual Fire are reflective of its excellent risk-adjusted capitalization, sound pure loss ratios, consistently profitable operating performance and local market presence,” an A.M. Best release says.

The rating agency also noted the insurer’s “focused underwriting discipline” that has consistently produced favourable pure loss ratios for the latest five- and 10-year periods.

“Partially offsetting these positive rating factors are Mutual Fire’s elevated expense ratio and the potential challenges it may encounter as it expands into new markets across the Western region of Canada.”