OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a+” of Aviva Insurance Company of Canada and its affiliates, Elite Insurance Company, Traders General Insurance Company, Pilot Insurance Company, Scottish & York Insurance Company, Limited and S&Y Insurance Company. The outlook for the FSR is stable, while the outlook for the ICRs is negative. These companies are insurance subsidiaries of their ultimate parent company, AVIVA plc (United Kingdom).The Canadian operating entities are managed as one entity through common management and have solid brand name recognition marketing under the Aviva name.
The ratings acknowledge the importance of Aviva Insurance Company of Canada and its affiliates to the AVIVA plc organization and the explicit and implicit support derived from this relationship. Furthermore, the ratings reflect the leading position of Aviva Insurance Company of Canada and its affiliates in the Canadian property/casualty market along with their continued strong operating performance and solid risk-adjusted capital position.
The ratings are partially offset by the companies’ strong competition for market share and exposure to the challenging auto markets in certain parts of Ontario.
Positive rating movement is unlikely at present. Negative rating actions could occur if AVIVA plc’s financial leverage was to remain elevated, risk-adjusted capitalization was to deteriorate significantly, and/or financial results were negative in the coming financial periods.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
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Jacqalene Lentz, 908-439-2200, ext. 5762
Senior Financial Analyst
Greg Williams, 908-439-2200, ext. 5815
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Rachelle Morrow, 908-439-2200, ext. 5378
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Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations