OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of “a+” of Aviva Insurance Company of Canada and its affiliates, Elite Insurance Company, Traders General Insurance Company, Pilot Insurance Company, Scottish & York Insurance Company, Limited and S&Y Insurance Company. The outlook for the FSR is stable, while the outlook for the ICRs is negative. These companies, collectively referred to as Aviva Canada, are insurance subsidiaries of their ultimate parent company, Aviva plc (United Kingdom). The Canadian operating entities are managed as one entity through common management and have solid brand name recognition marketing under the Aviva name.
The ratings acknowledge the importance of Aviva Canada to the Aviva plc organization and the explicit and implicit support derived from this relationship. Furthermore, the ratings reflect the leading position of Aviva Canada in the Canadian property/casualty market, along with its continued strong operating performance and solid risk-adjusted capital position.
The ratings are partially offset by the companies’ strong competition for market share and exposure to the challenging auto and personal property markets in certain provinces.
A revision of the ICR’s outlook to stable is likely if there is a clear reduction in financial leverage and continued improvement in financial performance at Aviva plc. Negative rating actions could occur if Aviva plc’s financial leverage remains elevated, its risk-adjusted capitalization deteriorates significantly or financial results at Aviva plc or Aviva Canada are negative in the coming financial periods.
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:
- Risk Management and the Rating Process for Insurance Companies
- Rating Members of Insurance Groups
- Catastrophe Analysis in A.M. Best Ratings
- Understanding BCAR for Canadian Property/Casualty Insurers
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
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