OLDWICK, N.J.–(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
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.
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.
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for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
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Senior Financial Analyst
439 2200, ext. 5304
Manager, Public Relations
908 439 2200, ext. 5159
Raymond Thomson, CPCU, ARe, ARM
908 439 2200, ext. 5621
Director, Public Relations
439 2200, ext. 5644