What’s New: In Brief (December 03, 2007)

A.M. Best Co. has upgraded the financial strength rating of ACE INA Insurance (Canada) to A+ (Superior) from A (Excellent).
The ratings reflect A.M. Best’s view that the company maintains excellent capitalization, has delivered consistently strong operating performance for several years and receives solid brand recognition, an A.M. Best release says.
“The results are supported by significant underwriting profits, dependable net investment income and proficient expense management,” the statement adds.
The five-year averaged combined and operating ratios are 78.6% and 68.8%, respectively.

Amendments to Part XIII of the Insurance Act topped a list of recent developments on legislative changes, court cases and regulatory initiatives that will likely shape the Canadian insurance industry in 2008, the insurance group at Stikeman Elliott LLP says.
The list also includes:
new AMF guidelines on transferring a property and casualty portfolio between brokers;
British Columbia’s consultation on its insurance legislation; and
the Supreme Court of Canada’s causation ruling in Citadel General Assurance Co. v. Vytlingham and Lumbermens Mutual Casualty Co. v. Herbison.
“In two companion cases released by the Supreme Court of Canada on October 19, 2007, the court unanimously reaffirmed the requirement for a clear “unbroken chain” of causation in order to allow recovery in tort cases,” a release from Stikeman Elliott says.