MARCH 08, 2017 04:27 PM (EST)
A.M. Best Removes From Under Review and Upgrades Issuer Credit Rating of Echelon Financial Holdings Inc.
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 - MARCH 08, 2017 04:27 PM (EST)
A.M. Best has removed from under review with positive implications and upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bb+” from “bb” of Echelon Financial Holdings Inc. (EFH) [TSX: EFH] (Mississauga, Ontario), following the recent announcement that EFH has completed the sale of its subsidiary, Qudos Insurance A/S, a vehicle that writes non-standard auto and program business primarily in Ireland, the United Kingdom and Denmark. The outlook assigned to the Credit Rating (rating) is stable.
The close of the transaction and divestiture of its holdings in overseas markets will allow EFH’s management to refocus efforts on its Canadian operating subsidiaries, Echelon Insurance (Echelon) and The Insurance Company of Prince Edward Island (ICPEI), to improve their core businesses lines in Canada. In addition, proceeds from the transaction will be allocated to improve risk-adjusted capital positions of each operating entity as needed. On June 23, 2016, A.M. Best affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb+” of Echelon, as well as the FSR of B++ (Good) and the Long-Term ICR of “bbb” of ICPEI (see related press release). The ratings of Echelon and ICPEI remain unchanged at this time.
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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.