CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MAY 31, 2002 12:00 AM (EDT)
A.M. Best Co. has downgraded the public data rating (pd) to B+pd from B++q of Allstate Insurance Company of Canada, Markham, Ontario. A.M. Best has also downgraded the public data rating to B-pd from B+q of its affiliate, Pembridge Insurance Company, Markham, Ontario.
The rating action for Allstate Insurance Company of Canada reflects its lagging operating results in recent years. Due to struggling capital markets, realized capital gains have declined substantially with the company continuing to experience significant underwriting losses. Moreover, in 2001, the company experienced adverse reserve development relate to Ontario auto. Partially offsetting these factors is Allstate's adequate level of capitalization.
The rating action for Pembridge Insurance Company reflects its poor operating performance, unfavorable reserve development and growing concentration of business in Ontario and the Atlantic. Large net losses have eroded Pembridge's previously strong capital position. Poor underwriting performance was primarily driven by unfavorable Ontario auto results.
A pd rating is an A.M. Best opinion rating of the long-term financial strength of an insurer or reinsurer. The rating is expressed using the same rating scale and definitions as an A.M. Best interactive rating of long-term financial strength, but a pd rating modifier has been added to ensure the user is aware of the more limited information basis for the rating. The pd rating does not reflect the detailed interviews of senior management and access to non-public data and other information, which plays a significant role in the interactive rating analysis. A.M. Best interactively rates the majority of insurers in Canada. Best's Public Data Ratings are replacing Best's Qualified Ratings.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.