A.M. Best Upgrades PD Ratings of 12 Canadian Property/Casualty Insurers.OLDWICK, N.J. -- A.M. Best Co. has upgraded the public data (pd) financial strength ratings of 12 property/casualty Canadian insurers. These pd ratings are based solely upon public information and present the most informed view A.M. Best can offer, short of an insurer participating in the full interactive rating process. These pd rating upgrades are reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of stronger capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. and improved operating performance for each of the companies. In recent years, improved operating performance and capitalization has been in direct correlation Noun 1. direct correlation - a correlation in which large values of one variable are associated with large values of the other and small with small; the correlation coefficient is between 0 and +1 positive correlation with auto reforms throughout many of the provinces in Canada, as well as lower claims frequency and more adequate pricing. Based on company-specific and industry-wide financial analysis, A.M. Best anticipates these companies in the near term will be able to maintain their favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. operating performance and capital strength during the apparent downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. cycle. A.M. Best's pd ratings are assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to insurers in select markets that do not subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; A.M. Best's interactive rating process. A.M. Best uses the same rating scale and definitions as it does for its long-term financial strength interactive ratings but applies a pd rating modifier (programming) modifier - An operation that alters the state of an object. Modifiers often have names that begin with "set" and corresponding selector functions whose names begin with "get". to ensure the user is aware of the more limited information basis for the rating. An interactive A.M. Best rating is produced at the request of the insurer. The interactive rating process includes detailed interviews of senior management and access to non-public data and other information. The pd rating process is based on statutory filings of the companies and an A.M. Best committee review of the company's financial strength, along with current market conditions in which the company operates. Currently, the companies that participate in the interactive rating process collectively represent a significant percentage of market share in the Canadian property/casualty industry. A.M. Best has upgraded the pd ratings of the following Canadian property/casualty companies: Company Rating Alberta Motor Association Insurance Company A- (Excellent) Allstate Insurance Company of Canada A- (Excellent) Alpha Assurance Company A- (Excellent) Certas Direct Insurance Company B+ (Very Good) Economical Mutual Insurance Company B++ (Very Good) Farmers' Mutual Insurance Company (Lindsay) B++ (Very Good) Gore Mutual Insurance Company B++ (Very Good) Pictou County Farmers Mutual Fire Insurance Company B++ (Very Good) TD General Insurance Company B+ (Very Good) The Personal Insurance Company B+ (Very Good) Traders General Insurance Company B+ (Very Good) Waterloo Insurance Company B++ (Very Good) A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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