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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 18, 2022 11:03 AM (EST)
AM Best has affirmed the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-” (Good) of Definity Financial Corporation (Definity Financial) (Ontario, Canada). Concurrently, AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Definity Insurance Company (Definity Insurance). Both companies are domiciled in Ontario, Canada. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Definity Insurance’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.
The rating affirmations also reflect improved operating performance, partially due to refinement of underwriting practices and expansion into commercial lines, as well as a tempering of the group’s expense ratio, which historically was elevated due to scaling of its digital platform and expenses associated with its recent demutualization and IPO. Risk-adjusted capitalization is expected to be maintained at a level that is supportive of strong business growth as the group executes its business strategy. As a newly formed public entity, the group’s balance sheet is presently unlevered. However, going forward, AM Best expects that financial leverage and interest coverage will be maintained at levels commensurate with its current ratings.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.