Optimum General upgraded by A.M. Best

Following improved financial performance, three of the four subsidiaries of Montreal-based Optimum General Inc. have been upgraded by A.M. Best to "B-" (fair) from "C++" (marginal). These ratings apply to Optimum Insurance Co., Optimum Farm Insurance Inc. and Optimum Frontier Insurance Co. Only Optimum West Insurance Co. of B.C. remains affirmed at the "C++" level.
The rater says the upgrades reflect the three companies’ improved underwriting and operating performance, as well as their improved capital position. "These improvements are reflective of corrective initiatives undertaken by management in recent years to improve overall results." This includes the decision to withdraw from unprofitable markets. While capitalization has benefited from improved performance, the rater says it remains "moderate" relative to exposures.
Optimum West, however, has improved at a much slower pace and capitalization remains modest, A.M. Best says.