A.M. Best Co. announced that it has affirmed the financial strength rating of “A” (Excellent) for Toronto-based GCAN Insurance Company with a stable outlook.
“The rating of GCAN reflects its excellent level of capitalization, strong underwriting and operating results and leading market position as a commercial lines insurer in Canada,” said Best. “GCAN has a long standing history of superior underwriting and operating performance, which has supported its internal growth and ability to comfortably expand its premium writings. This performance record over the years has exceeded its market peers and the greater insurance industry.”
Best cited the “competitive conditions created by the approaching down cycle of the insurance industry,” as an offsetting factor. It also noted that the “volatility in the world investment markets will continue to pose a challenge to management to earn past levels of investment yields. Furthermore, as a commercial insurer, GCAN utilizes a significant amount of reinsurance and maintains a comprehensive reinsurance program with quality players. This reinsurance shields the company and its capitalization from large shock loses.”