A.M. Best Upgrades Ratings of Optimum General Insurance Group Members.OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating to B+ (Good) from B (Fair) and issuer credit ratings to "bbb-" from "bb+" of Optimum Insurance Company Inc, its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Optimum Farm Insurance Inc (both of Montreal, Canada) and Optimum West Insurance Company (Vancouver, Canada). Together the members are known as Optimum General Insurance Group (Canada). The outlook for all ratings is stable. These rating actions reflect the group's improved capitalization, consistent operating results and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. reserve development on both an accident and calendar year basis. The improved results are derived by the group's consistent net investment income and favorable underwriting income Underwriting income For an insurance company, the difference between the premiums earned and the costs of settling claims. . As a result, additions to surplus have been reported for five consecutive years. The group has benefited from management's implementation of corrective actions A corrective action is a change implemented to address a weakness identified in a management system. Normally corrective actions are instigated in response to a customer complaint, abnormal levels if internal nonconformity, nonconformities identified during an internal audit or to improve performance, tighten 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. guidelines and improved rate adequacy. Partially offsetting these positive factors are competitive pricing pressure particularly in commercial lines, rate adequacy within the market and the group's inherent exposure to frequent and severe weather related events. Optimum Insurance Company Inc writes commercial and personal lines insurance business mainly in Ontario and Quebec, while Optimum Farm Insurance Inc writes similar lines exclusively in Quebec. Optimum West Insurance Company provides residential and automobile insurance to individuals and property/liability insurance to commercial clients in British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography , Alberta and the Yukon Territory Yukon Territory, territory (2001 pop. 28,674), 207,076 sq mi (536,327 sq km), NW Canada. Geography and Climate The triangle-shaped Yukon territory is bordered on the N by the Beaufort Sea of the Arctic Ocean, on the E by the Northwest Territories, . 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion