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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 03, 2019 10:18 AM (EDT)
AM Best has maintained the under review with developing implications status for the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of Echelon Insurance (Echelon) (Mississauga, Ontario).
These Credit Ratings (ratings) were placed under review with developing implications on Nov. 12, 2018, following an announcement that Echelon Financial Holdings Inc. (EFH) had entered into a stock purchase agreement to sell Echelon Insurance to CAA Club Group. At that time, AM Best indicated that the ratings would remain under review until the transaction was completed and a full assessment of the impact of the changes could be reviewed.
While the transaction closed on May 31, 2019, AM Best’s review of the impact of the transaction is continuing. Echelon’s ratings will remain under review until AM Best completes its discussions with CAA Club Group to gain greater insight into the overall impact of the transaction on Echelon’s prospective balance sheet strength, operating performance, business profile and enterprise risk management. Of particular focus will be CAA Club Group’s strategic initiatives to address the decline in Echelon’s risk-adjusted capitalization brought on by pre-close reserve strengthening and continued premium growth.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with an exclusive focus on the insurance industry.