The Co-operators primed for potential bond upgrade: S&P’s

Co-operators General Insurance Company is among 32 global insurance companies listed among Standard & Poor’s most recent index of 398 global companies in line for potential bond upgrades.
“Financials [i.e. including insurers] maintained their preeminent position among sectors most likely to benefit from upgrades (in line with previous months) and displayed a high percentage of issuers listed with a positive bias (i.e., a positive outlook or ratings on CreditWatch with positive implications),” Standard & Poor’s reported in its recent report, Global Fixed Income: Upgrade Potential Across Credit Grades And Sectors. “Banks, high technology, and insurance companies displayed the highest potential for upgrades.”
In Canada, a total of 10 financial entities were listed as being on CreditWatch Positive (2) and having a positive outlook (8), both indicators of a potential bond upgrade. The Co-operators is among the 10 Canadian companies listed.
Looking at the global insurance sector, Standard & Poor’s noted in a press release that potential upgrades were concentrated particularly in the life insurance, reinsurance, and health insurance subcategories.
“The reinsurance sector has taken steps to improve its financial position by pursuing a wide range of capital-raising initiatives, strengthening pricing, and improving terms and conditions in catastrophe-exposed lines of business such as property, marine, and energy,” the Standard & Poor’s report says. “Amid this change, it seems there will be relatively stable renewal rates for other lines of business.”