A.M. Best Co. has commented that the financial strength rating of ‘A+’ (Superior) and issuer credit ratings (ICR) of “aa-” of ING Canada Group (the Group) are unchanged following the announcement by ING Canada Inc. that its major shareholder, The Netherlands ING Insurance International N.V., intends to sell all of its common share holdings in ING Canada.
Best also stated that ING Canada’s ICR of “a-” and indicative ratings of “a-” on senior unsecured debt securities, “bbb+” on subordinated unsecured debt securities and “bbb” on Class A preferred shares on its CAD 1 billion (US $815 million) preliminary short form base shelf prospectus also are unchanged.
Best also noted that ING’s Canada Group includes “Belair Insurance Company Inc. (Montreal, Quebec), ING Insurance Company of Canada, ING Novex Insurance Company of Canada, The Nordic Insurance Company of Canada and Trafalgar Insurance Company of Canada. All companies are domiciled in Toronto, Ontario, unless otherwise specified. The outlook for all ratings is stable.”
Best pointed out that the “planned sale is expected to be completed within the next several weeks through private placement and public offering. ING Canada Inc. will not receive any proceeds from the sale of the common shares. The Group is well positioned as the market leader in the Canadian property/casualty insurance industry.”
Best added that it “does not anticipate a significant change in capitalization or operating performance as a result of the sale.”
Source: A.M. Best – www.ambest.com
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