CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MAY 07, 2010 12:00 AM (EDT)
A.M. Best Co. has revised the outlook to stable from negative and affirmed the financial strength rating of B (Fair) and issuer credit rating of "bb" of Peace Hills General Insurance Company (Peace Hills) (Alberta, Canada).
The revised outlook of Peace Hills reflects its improved risk-adjusted capitalization due primarily to investment and underwriting gains. Capitalization is steadily recovering from the adverse impact of the equity market downturn occurring in 2008. Peace Hills' balance sheet has been strengthened by favorable asset values generated by gains in the investment markets. The ratings continue to reflect soft commercial lines pricing and strong competitive pricing pressure.
Partially offsetting these negative ratings factors is Peace Hills' historically favorable operating results and the corrective actions implemented by the company's management team to reduce investment leverage and earnings volatility. The company also is focused on increasing premium rates across all major lines of business and to slow growth.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.