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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 21, 2019 12:36 PM (EST)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Ratings of “bbb+” of Canal Insurance Company and Canal Indemnity Company, collectively referred to as Canal Group (Canal). Both companies are domiciled in Greenville, SC.
The Credit Ratings (ratings) reflect Canal’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
The positive outlooks are based on the group’s much-improved accident- and calendar-year results over the past several years and a myriad of corrective actions taken by Canal over an extended period. Among the more pronounced actions taken include re-underwriting initiatives (i.e., pricing and business mix), multiyear reserve strengthening, the discontinuation of unprofitable territories and agents, eliminating noncore lines of business and improvements to underwriting sophistication and discipline. As a result, underwriting and operating results now are moving to levels that potentially could change AM Best’s assessment of operating performance to appropriate from marginal in the near to midterm. The revised outlooks also consider expectations of a similar trend through 2020.
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 credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.