AM Best Revises Outlooks to Negative for Western Surety Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Western Surety Company (WSC) (Regina, Saskatchewan, Canada).

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

The revision of the outlooks to negative from stable reflects continued volatility in WSC’s operating performance, with the company generating net income in only three of the past five years and an underwriting gain in just two years. Underwriting performance deteriorated further in 2025, with underwriting losses reaching their highest level during the five-year period. As a result, WSC’s underwriting metrics trail other Canadian surety writers and rated Canadian property/casualty insurers. Operating performance also has been somewhat volatile given the company’s limited scale. Additionally, WSC has experienced significant losses in the first quarter for the second consecutive year, a trend that historically has been atypical. The broader surety industry also has experienced elevated claims activity in recent years, but WSC’s continued underwriting volatility and weaker performance relative to peers remain key concerns. Negative rating action may occur if WSC’s underwriting performance fails to improve, operating metrics continue to underperform peers, or results fall short of the adequate operating assessment.

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