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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 13, 2020 04:27 PM (EDT)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” of Canassurance Hospital Service Association (d/b/a Quebec Blue Cross and Ontario Blue Cross) (Canassurance) and its subsidiary, Canassurance Insurance Company. Both companies are domiciled in Montreal, Quebec. The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings reflect Canassurance’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The rating affirmations reflect Canassurance’s high level of risk-adjusted and absolute capital, which is supported by a history of profitable operating performance. Canassurance offers a well-diversified product line and has strong brand recognition in its core markets. Canassurance is licensed by the Canadian Association of Blue Cross plans to operate in Quebec and Ontario. The Blue Cross name is known widely in Canada, and offers brand recognition in the supplemental health and dental insurance market. Canassurance also is known widely for its travel assistance services, which complement its out-of-country medical products.
However, Canassurance has been challenged to grow its premium revenue materially as a result of competitive pressure in its individual health business, which has been offset partially by growth in travel business through the end of 2019. AM Best anticipates that revenues from Canassurance’s travel business will be impacted unfavorably by COVID-19 through 2021. Furthermore, in 2019, the company began a digital transformation initiative to enable more flexibility in its products and service offers, as well as to reduce fixed cost, these technology investments could contract net earnings for the near term.
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 Guide to 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 analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.