A.M. Best Affirms Ratings of The Co-operators Group Limited’s Subsidiaries and Co-operators Financial Services Limited
16 Março 2010 - 4:56PM
Business Wire
A.M. Best Co. has affirmed the financial strength ratings
(FSR) and issuer credit ratings (ICR) of the subsidiaries of The
Co-operators Group Limited (The Co-operators). In addition,
A.M. Best has affirmed the ICR of “bbb-” and the senior debt rating
of “bbb-” on CAD 150 million 5.07% senior unsecured debentures, due
July 2012 of Co-operators Financial Services Limited (CFSL)
(Ontario), an interim holding company.
Concurrently, A.M. Best has affirmed the debt ratings of “bbb-”
of the preferred shares issued by Co-operators General Insurance
Company (Co-operators General) (Ontario) (TSX: CCS.PR.C and
CCS.PR.D). The outlook for all ratings is stable. (Please see below
for a detailed listing of the companies and ratings.)
The ratings of Co-operators General are reflective of its strong
capitalization, generally historically profitable operating
performance as well as its market leadership position driven by
strong brand name recognition, product line and geographic
diversification and effective use of subsidiaries and multiple
channels of distribution.
Partially offsetting factors are Co-operators General’s
continued soft market in the commercial lines sector, strong
competitive pressure in personal lines, challenging automobile
markets and a trend of more frequent and severe losses from storms
across Canada.
The ratings of The Sovereign General Insurance Company
(Sovereign) (Alberta), L’Union Canadienne Compagnie
D’Assurances (L’Union) (Quebec) and COSECO Insurance
Company (COSECO) (Ontario) recognize their risk-adjusted
capitalization relative to their ratings, good overall balance
sheet liquidity and their strategic roles within the Co-operators
group. Furthermore, COSECO’s higher than expected underwriting
losses were partially offset by additional capital provided by
Co-operators General.
The rating of Co-operators Life Insurance Company
(Co-operators Life) (Saskatchewan) acknowledges its strong
risk-adjusted capital position, very good level of profitability
and continued premium growth in its core business segments. The
company offers a wide variety of products to individual, group and
credit union markets throughout Canada.
Partially offsetting these strengths are Co-operators Life’s
challenges to successfully penetrate the Quebec market, transition
issues as it integrates the CUMIS acquisition and the potential
impact of the current economic environment on the company’s new
sales and premium growth. The CUMIS acquisition should further
strengthen and diversify the company’s business profile, but full
integration will take some time to complete.
The FSR of A- (Excellent) and ICR of “a-” have been affirmed for
Co-operators General Insurance Company, a subsidiary of
The Co-operators Group Limited.
The FSR of B++ (Good) and ICR of “bbb” have been affirmed for
The Sovereign General Insurance Company, a subsidiary of
The Co-operators Group Limited.
The FSRs of B+ (Good) and ICRs of “bbb-” have been affirmed for
COSECO Insurance Company and L’Union Canadienne Compagnie
D’Assurances, both subsidiaries of The Co-operators Group
Limited. Sovereign, COSECO and L’Union are wholly owned
subsidiaries of Co-operators General Insurance Company.
The FSR of A (Excellent) and ICR of “a” have been affirmed for
Co-operators Life Insurance Company, a subsidiary of The
Co-operators Group Limited.
The following debt ratings have been affirmed:
Co-operators General Insurance Company—
- “bbb-” on $100 million
non-cumulative 5-year reset Class E preference shares, Series D
(plus a $15 million over allotment of these shares)
- “bbb-” on $100 million
non-cumulative redeemable Class E preference shares, Series C
For Best’s Credit Ratings, an overview of the rating process and
rating methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings,
including any additional methodologies and factors that may have
been considered, can be found at
www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service
credit rating organization dedicated to serving the financial and
health care service industries, including insurance companies,
banks, hospitals and health care system providers. For more
information, visit www.ambest.com.
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