A.M. Best Co. announced that it has affirmed the financial strength rating of “A-” (Excellent) of SGI Canada and the financial strength ratings of “B+” (Very Good) of its subsidiary, SGI Canada Insurance Services Limited (SCISL). Both companies are headquartered in Saskatchewan. Best also affirmed its “B+” rating on SCISL’s subsidiary, The Insurance Company of Prince Edward Island (ICPEI), which is headquartered in that Province.
In the same context Best said it has also “affirmed the financial strength rating of ‘B-‘ (Fair) of SCISL’s subsidiary, Coachman Insurance Company (Ontario, Canada). The rating outlook for SGI Canada is stable; the outlook for SCISL has been revised to positive from negative; the outlook for ICPEI has been revised to positive from stable; and the outlook for Coachman has been revised to stable from negative.”
Best noted: “The affirmation of the ratings reflects each company’s risk-adjusted capitalization, improved operating performance, strong business profile and position within their respective markets, as well as the centralization of investment management, reinsurance procurement and management support provided by SGI Canada.
“In addition, these companies benefit from the explicit financial support of their ultimate parent, the province of Saskatchewan. These strengths are partially offset by each company’s concentration of risk within their respective home province, which subjects them to local government regulations and market conditions as well as catastrophic loss from weather-related events.
“The group’s experienced management team and comprehensive reinsurance program backed by quality reinsurers partially mitigates these risks. In addition, A.M. Best views favorably SGI Canada’s initiatives to reduce its concentration of risk by diversifying its product line in Ontario and expanding into other provinces.”
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