CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - SEPTEMBER 30, 2004 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of SGI Canada (Saskatchewan, Canada) and the financial strength ratings of B+ (Very Good) of SGI Canada's subsidiary, SGI Canada Insurance Services Ltd. (SCISL) (Saskatchewan, Canada) and SCISL's subsidiary, The Insurance Company of Prince Edward Island (ICPEI) (Prince Edward Island, Canada). Additionally, A.M. Best has downgraded the financial strength rating to B- (Fair) from B (Fair) of SCISL's subsidiary, Coachman Insurance Company (Ontario, Canada). The rating outlook for SGI Canada and ICPEI is stable. The rating outlook for SCISL and Coachman remains negative.
The affirmation of the ratings of SGI Canada, SCISL and ICPEI reflects their solid financial strength, operating performance, strong business profile and position within their respective markets, as well as the centralization of underwriting, investment management, reinsurance procurement and management support provided by SGI Canada.
SGI Canada is a major multi-line writer in Saskatchewan. The company is the property/casualty market leader and the primary provider of competitive automobile insurance in the province.
SCISL provides commercial and personal property coverages in Manitoba, while ICPEI is among the top four companies in Prince Edward Island providing primarily auto coverages followed by personal and commercial property coverages.
The rating downgrade of Coachman reflects its weak capital position, continued poor operating performance and its concentration of risk in the difficult Ontario automobile market. However, underwriting and operating performance have shown significant improvement over the last 18 months. Additionally, the company benefits from the centralized management and explicit financial support provided by SGI Canada, as well as initiatives taken by Coachman to protect surplus, diversify its underwriting book of business into personal and commercial property lines and increasing its rates while eliminating unprofitable business and reducing expenses. A.M. Best anticipates that capital will continue to be strained until Coachman attains operating profitability.
For current Best's ratings, independent data and analysis on more than 3,000 individual property/casualty companies, groups and industry composites, please visit Best's Property/Casualty Center.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.