What’s New: In brief (December 20, 2006)

Peace Hills General Insurance Company’s financial strength received a B+ rating from A.M. Best Co.
The positive rating is due to the Alberta firm’s “excellent risk-adjusted capitalization, strong liquid balance sheet, steady organic surplus growth from better than average profitability, favourable reserve development and a sound reinsurance program,” says an A.M. Best release.
The positive rating factors are partially offset by Peace Hill’s geographic concentration in the province of Alberta which exposes the company to local competitive market pressures, severe weather-related risks and regulatory intervention.
A.M. Best anticipates that Peace Hills will continue to produce good results in the near term, but revenue generation could be challenged by further mandatory automobile rate reductions in Alberta and increased competitive pricing.

Zurich Insurance Company received a financial strength rating of A from A.M. Best Co.
The firm is the main operating company of Zurich Financial Services (ZFS) Group and its subsidiaries.
A.M. Best predicts ZSF’s 2006 earnings to reach approximately US$4 billion, compared to US$3.3 billion in 2005.
The ratings agency also “expects non-life gross premiums written to grow by approximately two percent to US$34 billion, driven by new business and higher than expected retained business.’