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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 06, 2015 02:39 PM (EDT)
A.M. Best has revised the outlook to stable from positive and affirmed the financial strength rating (FSR) of B+ (Good) and the issuer credit rating (ICR) of "bbb-" of Peace Hills General Insurance Company (Peace Hills)(Alberta).
The revised outlook reflects the ongoing impact of frequent and severe losses and weather-related catastrophes on underwriting results, despite the implementation of several underwriting initiatives.
The ratings of Peace Hills reflect its good risk-adjusted capitalization, good balance sheet liquidity and local market expertise. These positive rating factors are partially offset by strong competitive market pressures and a recent trend of increased large loss activity and weather-related catastrophes on operating results.
The ratings and outlook of Peace Hills may come under negative pressure if an unfavorable earnings trend continues and/or risk-adjusted capital erodes. However, the ratings could benefit from a consistently favorable earnings trend that outperforms peers in the long term while maintaining strong risk-adjusted capitalization.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best's Ratings & Criteria Center.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.