AM Best Upgrades Credit Ratings of OneBeacon U.S. Holdings, Inc. and Its Subsidiaries; Affirms Credit
Ratings of Intact Insurance Company and Its Subsidiaries
AM Best has upgraded the Financial Strength Rating (FSR) to A+ (Superior) from A (Excellent) and the Long-Term Issuer
Credit Ratings (Long-Term ICR) to “aa-” from “a+” of Atlantic Specialty Insurance Company (Atlantic Specialty) (New York, NY) and
its subsidiaries (formerly known as OneBeacon Insurance Group). At the same time, AM Best has upgraded the Long-Term ICR to “a-”
from “bbb+”and the Long-Term Issue Credit Ratings (Long-Term IRs) of OneBeacon U.S. Holdings, Inc. (Delaware). Concurrently, AM
Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa-” of Intact Insurance Company (Ontario, Canada) and its
wholly owned subsidiaries (formerly known as Intact Insurance Group). Also, AM Best has affirmed the Long-Term ICR of “a-” and the
Long-Term IR of the parent holding company, Intact Financial Corporation (Intact Financial) (Ontario, Canada) [TSX: IFC]. The
outlook of these Credit Ratings (ratings) is stable. (Please see link below for a detailed list of the companies and Long-Term
IRs.)
In addition, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICR of “aa-” of IFC’s separately rated member,
Intact Farm Insurance Inc. (Intact Assurance agricole) (Quebec). The outlook of these ratings is stable.
The ratings reflect Intact Financial’s consolidated balance sheet strength, which AM Best categorizes as very strong, as well as
its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
Intact Financial maintains very strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), at the
99.6% level. Strong pre-tax operating earnings have outperformed the industry composite over the most-recent five-year period, with
operating earnings driven by net investment income and augmented by underwriting income. The favorable business profile reflects
Intact Financial’s position as Canada’s largest insurer of homes, autos and businesses, with strong brand name recognition and
multichannel distribution capabilities across Canada. In addition, Intact Financial is now a leading provider of specialty
insurance in North America, following the acquisition of Atlantic Specialty in late 2017.
The rating upgrades of Atlantic Specialty and its subsidiaries reflect their strategic importance to, and strategic alignment
with Intact Financial. Through this acquisition, Intact Financial broadened its geographic reach and product offerings through a
multichannel distribution model. In addition, Atlantic Specialty benefits from the investment management, reinsurance procurement
and actuarial support at the corporate level, which includes legal, finance, ERM, and modeling expertise.
The ratings of Intact Assurance agricole reflect its balance sheet strength, which AM Best categorizes as strongest, as well as
its strong operating performance, neutral business profile and appropriate ERM.
Intact Assurance agricole maintains the strongest risk-adjusted capitalization, as measured by BCAR, at the 99.6% level. Strong
pre-tax operating earnings have outperformed the property industry composite by a wide margin over the most-recent five-year
period, with operating earnings driven by underwriting income and augmented by net investment income. The neutral business profile
reflects Intact Assurance agricole’s geographic concentration, as 100% of its written premiums are derived from Quebec. Intact
Assurance agricole maintains strong brand name recognition, writing agricultural risks in Quebec.
A
complete listing of the members of Intact Financial Corporation’s FSRs, Long-Term ICRs and Long-Term IRs also is available.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information
relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual
ratings referenced in this release, please see AM Best’s
Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions,
please view
Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press
releases, please view
Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit
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Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Gordon McLean
Senior Financial Analyst
+1 908 439 2200, ext. 5304
gordon.mclean@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Raymond Thomson, CPCU, ARe, ARM
Director
+1 908 439 2200, ext. 5621
raymond.thomson@ambest.com
Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com
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