AM Best Downgrades Credit Ratings of Fenchurch General Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has downgraded the Financial Strength Rating to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Rating to “bbb” (Good) from “a-” (Excellent) of Fenchurch General Insurance Company (Fenchurch) (Toronto, Canada). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Fenchurch’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management (ERM).

The ratings for Fenchurch are being downgraded following the release of year-end 2025 results, which included significant reserve strengthening in the company’s legacy accident and sickness (A&S) line of business that has impacted the company’s balance sheet strength and enterprise risk management assessments. AM Best notes that the reserve strengthening was driven by a change in Fenchurch’s reserve methodology rather than adverse development. Nonetheless, in AM Best’s opinion, the materiality of the reserve strengthening highlights a weakness around reserving controls and oversight, as the previous reserve methodology used in the A&S segment was not reflective of the life-contingent nature of the business. Due to the strengthening of reserves, Fenchurch reported a larger net loss than anticipated, which has subsequently pressured capital levels and risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best notes that Fenchurch is in the process of strengthening controls and governance processes and procedures that should benefit overall ERM going forward. Additionally, management has updated its strategic and capital plans. While management is in the process of implementing these updates, there remain execution risks.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.