A.M. Best Co. affirmed the financial strength rating of “A” (excellent) of the Guarantee Company of North America based in Montreal, Canada. Best also affirmed the “A-” (excellent) financial strength ratings of the U.S. subsidiaries, GCNA USA, Mount Laurel, N.J., and Mid-State Surety Corp., Grosse Pointe Farms, Mich. The outlook for all the ratings is stable.
The ratings reflect GCNA’s excellent capitalization, favorable operating performance, and its strong branding and marketing presence. GCNA maintains a significant market share in the Canadian fidelity and surety sector, and benefits from an experienced management team and conservative underwriting and operating practices. The company also created new business opportunities and expanded its surety line by acquiring Mid-State Surety Corp. and GCNA USA. Partially offsetting the positives are the competitive market conditions in Canada and the Ontario auto market. However, GCNA lessened the impact with increased rates, more conservative risk selection and territorial diversification. Continued focus will be on integrating its U.S. subsidiaries and improving their operating performance.
Topics Canada
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