What’s New: In Brief (June 07, 2007)

A.M. Best Co. has placed the financial strength rating (FSR) of A- (Excellent) of Lincoln General Insurance Company and Kingsway Reinsurance Corporation (KRC), a subsidiary of Kingsway Financial Services Inc. (KFSI), under review with negative implications.
The under review status of KRC is based upon A.M. Bests opinion that if KRC is further utilized to support Lincoln General, risk-adjusted capitalization of KRC will be weakened and may not support the current ratings without additional capital support from KFSI, an A.M. Best statement says.
Given the current soft market conditions, A.M. Best does not expect KRCs 2007 earnings to be as strong as they have been in recent years.
The ratings will be downgraded if financial projections for KRC do not exceed A.M. Bests expectations or if capital is not replenished by KFSI.

A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) of Old Republic General Insurance Company of Canada.
The ratings are based on the companys excellent capitalization, solid operating performance and consistently favourable reserve development, says an A.M. Best statement.
The ratings also consider the financial support and synergies afforded to the company as an affiliate of Great West.
Great West provides assistance in several areas, which include underwriting, claims, pricing, subrogation and salvage recovery.