A.M. Best Co. announced that it has affirmed the financial strength ratings of “A-” (Excellent) of the member companies of the Toronto-based Northbridge Financial Corporation. Best also revised the outlook for all of the ratings to stable from negative.
“These companies include Commonwealth Insurance Company (Vancouver, British Columbia) and its subsidiary, Commonwealth Insurance Company of America (Seattle, WA); Federated Insurance Company of Canada (Winnipeg), Lombard General Insurance Company; Lombard Insurance Company; Markel Insurance Company of Canada and Zenith Insurance Company (all of Toronto),” said the announcement.
“The ratings reflect the group’s overall strong capitalization, improved underwriting and operating performance and its prominent market position in the Canadian insurance marketplace,” said Best. “In recent years, the companies have successfully completed a realignment of underwriting focus into more profitable lines and market segments, and as a result, overall underwriting and operating experience has trended favorably. Furthermore, the companies benefit from the strong management teams at each of the entities, as well as the management expertise and synergies received as part of Northbridge.”
Best noted that the competitive conditions in the Canadian property/casualty marketplace partially offset these rating factors. “Moreover, the group will be challenged along with the industry to maintain underwriting discipline as market conditions soften,” it added.
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