Press Release - MARCH 08, 2019
AM Best Upgrades Credit Ratings of OneBeacon U.S. Holdings, Inc. and Subs; Affirms Ratings of Intact Insurance Company and Subs
FOR IMMEDIATE RELEASE
OLDWICK - MARCH 08, 2019
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.
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