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What’s new: In brief (May 12, 2004)


May 12, 2004   by Canadian Underwriter


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AXA Canada Inc’s subsidiaries have seen their financial strength ratings affirmed by A.M. Best. AXA Assurances and AXA Assurances Agricoles are affirmed at “A+” (excellent) with a stable outlook. AXA Pacific is affirmed at “A” (excellent with a stable outlook. But the “A-” (excellent) ratings affirmed for AXA Insurance, Anglo Canada General and Insurance Corp. of Nfld. still carry a negative outlook due to the volatility of auto insurance markets.

The Insurance Information Institute (III) says the current investigation into broker compensation agreements by New York’s Insurance Department belies the fact that these agreements produce a “win-win-win” scenario. This is because the broker sees additional revenue, the insurer can motivate the broker to place profitable business, and the buyer with low losses is more attractive to the insurer and sees better rates.

The “A-” (excellent) ratings of Northbridge Financial’s member companies has been affirmed by A.M. Best and the outlook revised from negative to stable. The rater points to Northbridge’s strong earnings and focus on technical underwriting as factors in the ratings affirmation. The decision of parent company Fairfax to reduce its stake in Northbridge is not cited as a negative factor.