A.M. Best Upgrades RSA Canada’s Ratings

A.M. Best has upgraded RSA Canada’s financial strength rating, along with ratings for several subsidiaries.

The upgrades reflect RSA Group of Canada’s “strong risk adjusted capitalization, solid investment income and sound reserve development,” according to A.M. Best analysts.  Royal and Sun Alliance Insurance Company of Canada’s FSR improved, going from an A- to an A, while its issuer credit rating rose from an “a-” to an “a.” The same ratings apply to subsidiaries Quebec Assurance Company and Western Assurance Company.

Other RSA Group members also saw ratings action: A.M. Best affirmed Ascentus Insurance Ltd.’s “B+” financial strength “bbb-“ issuer credit ratings, along with Unifund Assurance Company’s FSR of “B” and issuer credit rating of “bb.” Canadian Northern Shield Insurance Company also had its FSR of “B” and its issuer credit rating of “bb+” affirmed.

“The group has produced solid underwriting results, which have consistently increased equity over the last five years. Collectively, the group provides commercial property/casualty coverage as well as personal and specialty coverages throughout Canada,” the analysts note in a January 25 statement.

“Going forward, A.M. Best remains concerned about softening market conditions, fierce competition and the long-term benefits of regulated product reforms to auto insurance in the core operating territories of Ontario and Alberta. As a result, RSA Canada Group will be challenged to maintain current levels of profitability.”