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SEPTEMBER 02, 2021 04:31 PM (EDT)

AM Best Comments on Credit Ratings of Economical Mutual Insurance Company Following Public Filing of Preliminary Prospectus


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 Brian Lynch
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Jacqalene Lentz
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Christopher Sharkey
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FOR IMMEDIATE RELEASE

OLDWICK - SEPTEMBER 02, 2021 04:31 PM (EDT)
AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Economical Mutual Insurance Company (Economical Insurance) (Waterloo, Ontario, Canada) remain unchanged following the company’s recent announcement that Definity Financial Corporation (Definity) has filed a preliminary base PREP prospectus for a proposed initial public offering (IPO) of common shares of Definity.

Definity is a newly created entity incorporated under the Insurance Companies Act (Canada). It will be the parent company of Economical Insurance and its subsidiaries, directly owning all the outstanding shares of Economical Insurance, following the completion of the demutualization. The offering of common shares of Definity is being made to advance Economical Insurance’s well-established strategic plan to convert from a mutual insurance company to a publicly traded share company. Concurrent with the offering are separate common share purchase commitments from Healthcare of Ontario Pension Plan and Swiss Re Investments Holding Company Ltd.

AM Best will continue to monitor the ultimate organizational structure of Economical Insurance and its risk-adjusted capital position, following completion of the IPO.

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 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.


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