AM Best Upgrades Credit Ratings of OneBeacon U.S. Holdings, Inc. & Its Subsidiaries; Affirms Credit Ratings of Intact Insuran...
March 08 2019 - 2:22PM
Business Wire
AM Best has upgraded the Financial Strength Rating (FSR)
to A+ (Superior) from A (Excellent) and the Long-Term Issuer Credit
Ratings (Long-Term ICR) to “aa-” from “a+” of Atlantic Specialty
Insurance Company (Atlantic Specialty) (New York, NY) and its
subsidiaries (formerly known as OneBeacon Insurance Group). At the
same time, AM Best has upgraded the Long-Term ICR to “a-” from
“bbb+”and the Long-Term Issue Credit Ratings (Long-Term IRs) of
OneBeacon U.S. Holdings, Inc. (Delaware). Concurrently, AM Best has
affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa-”
of Intact Insurance Company (Ontario, Canada) and its wholly owned
subsidiaries (formerly known as Intact Insurance Group). Also, AM
Best has affirmed the Long-Term ICR of “a-” and the Long-Term IR of
the parent holding company, Intact Financial Corporation (Intact
Financial) (Ontario, Canada) [TSX: IFC]. The outlook of these
Credit Ratings (ratings) is stable. (Please see link below for a
detailed list of the companies and Long-Term IRs.)
In addition, AM Best has affirmed the FSR of A+ (Superior) and
the Long-Term ICR of “aa-” of IFC’s separately rated member, Intact
Farm Insurance Inc. (Intact Assurance agricole) (Quebec). The
outlook of these ratings is stable.
The ratings reflect Intact Financial’s consolidated balance
sheet strength, which AM Best categorizes as very strong, as well
as its strong operating performance, favorable business profile and
appropriate enterprise risk management (ERM).
Intact Financial maintains very strong risk-adjusted
capitalization, as measured by Best’s Capital Adequacy Ratio
(BCAR), at the 99.6% level. Strong pre-tax operating earnings have
outperformed the industry composite over the most-recent five-year
period, with operating earnings driven by net investment income and
augmented by underwriting income. The favorable business profile
reflects Intact Financial’s position as Canada’s largest insurer of
homes, autos and businesses, with strong brand name recognition and
multichannel distribution capabilities across Canada. In addition,
Intact Financial is now a leading provider of specialty insurance
in North America, following the acquisition of Atlantic Specialty
in late 2017.
The rating upgrades of Atlantic Specialty and its subsidiaries
reflect their strategic importance to, and strategic alignment with
Intact Financial. Through this acquisition, Intact Financial
broadened its geographic reach and product offerings through a
multichannel distribution model. In addition, Atlantic Specialty
benefits from the investment management, reinsurance procurement
and actuarial support at the corporate level, which includes legal,
finance, ERM, and modeling expertise.
The ratings of Intact Assurance agricole reflect its balance
sheet strength, which AM Best categorizes as strongest, as well as
its strong operating performance, neutral business profile and
appropriate ERM.
Intact Assurance agricole maintains the strongest risk-adjusted
capitalization, as measured by BCAR, at the 99.6% level. Strong
pre-tax operating earnings have outperformed the property industry
composite by a wide margin over the most-recent five-year period,
with operating earnings driven by underwriting income and augmented
by net investment income. The neutral business profile reflects
Intact Assurance agricole’s geographic concentration, as 100% of
its written premiums are derived from Quebec. Intact Assurance
agricole maintains strong brand name recognition, writing
agricultural risks in Quebec.
A complete listing of the members of Intact Financial
Corporation’s FSRs, Long-Term ICRs and Long-Term IRs also is
available.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Understanding Best’s Credit Ratings. For
information on the proper media use of Best’s Credit Ratings and AM
Best press releases, please view Guide for Media - Proper
Use of Best’s Credit Ratings and AM Best Rating Action Press
Releases.
AM Best is a global rating agency and information provider
with a unique focus on the insurance industry. Visit
www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Gordon McLeanSenior Financial Analyst+1 908 439
2200, ext. 5304gordon.mclean@ambest.com
Christopher SharkeyManager, Public Relations+1
908 439 2200, ext. 5159christopher.sharkey@ambest.com
Raymond Thomson, CPCU, ARe, ARMDirector+1 908
439 2200, ext. 5621raymond.thomson@ambest.com
Jim PeavyDirector, Public Relations+1 908 439
2200, ext. 5644james.peavy@ambest.com
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