CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - APRIL 23, 2020 04:05 PM (EDT)
AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating (FSR) to A+ (Superior) from A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “aa-” from “a” of The Guarantee Company of North America (GCNA) and its subsidiary, The Guarantee Company of North America USA (GCNA USA) (Southfield, MI) which are newly added members to Intact Financial Corporation (Intact Financial). The outlook assigned to these Credit Ratings (ratings) is stable.
Concurrently, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICR of “aa-” of Intact Insurance Company and the remaining subsidiaries of Intact Financial. In addition, AM Best has affirmed the Long-Term ICR of “a-” and the Long-Term Issue Credit Ratings (Long-Term IRs) of the parent holding company, Intact Financial [TSX: IFC]. The outlook of these ratings remains stable. Concurrently, AM Best has assigned a Long-Term IR of “a-” to Intact Financial’s recently issued CAD 300 million, Series 8, 3.691% senior unsecured medium-term notes, due March 24, 2025. The outlook assigned to this rating is stable.
At the same time, AM Best has affirmed the Long-Term ICR of “a-” and the Long-Term IR of Intact U.S. Holdings, Inc. (Delaware). Lastly, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICR of “aa-” of IFC’s separately rated member, Intact Farm Insurance Inc. (Intact Assurance agricole) (Quebec). The outlook of these ratings remains stable. (Please see link below for a detailed list of the companies and Long-Term IRs.) All companies are domiciled in Ontario, Canada, unless otherwise specified.
The ratings reflect Intact Financial’s consolidated balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
The ratings of Intact Assurance agricole reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate ERM.
Intact Financial maintains very strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Strong pre-tax operating earnings have outperformed the industry composite over the most-recent five-year period, with operating earnings driven by net investment income and augmented by underwriting income. The favorable business profile reflects Intact Financial’s position as Canada’s largest insurer of homes, autos and businesses, with strong brand name recognition and multichannel distribution capabilities across Canada.
The rating upgrades of GCNA and GCNA USA reflect their strategic importance to, and strategic alignment with Intact Financial. With the acquisition of Atlantic Specialty Insurance Company in late 2017, followed by the GCNA and GCNA USA acquisitions in 2019, IFC has become a leading provider of specialty insurance within North America. These acquisitions highlight Intact Financial’s ability to leverage its position to take advantage of opportunities as they arise within the industry, while further bolstering its product portfolio. The acquisition of GCNA further strengthens IFC’s leadership position in Canada while enhancing IFC’s surety platform in Canada and in the United States. The acquisition also adds public entity capabilities while expanding personal lines offerings to include high net worth products in Canada.
Intact Assurance agricole maintains very strong risk-adjusted capitalization, as measured by BCAR. Strong pre-tax operating earnings have outperformed the property industry composite by a wide margin over the most-recent five-year period, with operating earnings driven by underwriting income and augmented by net investment income. Intact Assurance agricole maintains strong brand name recognition, writing agricultural risks in Quebec.
A complete listing of the members of Intact Financial Corporation’s FSRs, Long-Term ICRs and Long-Term IRs also is available.
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 Guide to 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 credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.