Ratings Upgraded, Affirmed for GCAN Insurance

A.M. Best has upgraded GCAN Insurance Company’s issuer credit rating to “a+” from “a,” and affirmed its “A” financial strength rating. The ratings stem from the company’s “excellent capitalization, solid underwriting and operating performance and consistently favorable reserve development,” according to A.M. Best analysts, who also cite its “excellent” five-year average pre-tax returns on revenue and equity.

Rapid growth and entry into new commercial lines poses some risk for the company, though a January 26 A.M. Best statement points out that the company has reduced its reinsurance dependence and that it “is well positioned to withstand existing soft market conditions based on management’s historically conservative focus on profitability.”