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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 31, 2014 04:06 PM (EDT)
A.M. Best has placed under review with negative implications the financial strength rating of A (Excellent) and the issuer credit rating of "a" of Wynward Insurance Group (Wynward) (Winnipeg, Manitoba, Canada).
This rating action reflects A.M. Best's concern with the recent regression of the group's risk-adjusted capitalization resulting from the heightened frequency of weather-related loss events and several large commercial property losses that have adversely impacted operating results in 2014. The weather losses were generally below Wynward's reinsurance retention level, placing the exposure within the company, thereby weakening its risk-adjusted capital position.
Wynward's management team has presented A.M Best with a capital revitalization plan, which is currently being pursued. Given the execution risk, the ratings will remain under review pending the implementation of the company's action plan and completion of A.M. Best's analysis regarding the plan's effect upon Wynward's risk-adjusted capitalization and financial performance in the near and mid-term.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.