NOVEMBER 12, 2018 04:43 PM (EST)
A.M. Best Places Credit Ratings of Echelon Insurance and The Insurance Company of Prince Edward Island Under Review
Senior Financial Analyst
+1 908 439 2200, ext. 5304
Raymond Thomson, CPCU, ARe, ARM
+1 908 439 2200, ext. 5621
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 12, 2018 04:43 PM (EST)
A.M. Best has placed under review with developing implications the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” of Echelon Insurance (Echelon). Concurrently, A.M. Best has placed under review with negative implications the FSR of B++ (Good) and the Long-Term ICR of “bbb” of The Insurance Company of Prince Edward Island (ICPEI) (Prince Edward Island, Canada). Additionally, A.M. Best has placed under review with negative implications the Long-Term ICR of “bb+” of Echelon and ICPEI’s publicly traded parent, Echelon Financial Holdings Inc. (EFH) [TSX: EFH]. All companies are domiciled in Mississauga, Ontario, unless otherwise specified.
A.M. Best’s decision to place Echelon’s ratings under review with developing implications reflects confirmation that EFH has entered into a stock purchase agreement to be acquired by CAA Club Group. The transaction is expected to close during the second quarter of 2019, pending regulatory approval. The developing implications status reflects uncertainty with the future direction of the ratings pending discussions with CAA Club Group.
ICPEI’s ratings have been placed under review with negative implications given the execution risk surrounding EFH’s intent to work collaboratively in assisting ICPEI with developing stand-alone operations to ensure business continuity.
A.M. Best expects to resolve the under-review status of the ratings once the transaction has been completed and a full assessment of the impact of the changes has been reviewed.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.