fbpx

AM Best Withdraws Credit Ratings of Echelon Financial Holdings Inc. and Its Subsidiary

OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has removed from under review with negative implications
and downgraded the Financial Strength Rating to B+ (Good) from B++
(Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb-”
from “bbb” of The Insurance Company of Prince Edward Island (ICPEI)
(Prince Edward Island, Canada). Additionally, AM Best has removed from
under review with negative implications and downgraded the Long-Term ICR
to “bb-” from “bb+” of ICPEI’s publicly traded parent, Echelon Financial
Holdings Inc. (EFH) (Mississauga, Ontario) [TSX: EFH]. The outlook
assigned to these Credit Ratings (ratings) is stable. Concurrently, AM
Best has withdrawn the ratings in response to the companies’ request to
no longer participate in AM Best’s interactive rating process.

The ratings reflect ICPEI’s balance sheet strength, which AM Best
categorizes as adequate, as well as its adequate operating performance,
limited business profile and appropriate enterprise risk management.

The rating downgrades consider the recently completed transaction
whereby EFH sold a larger insurance entity (Echelon Insurance), removing
support and synergies that had benefited ICPEI’s ratings previously.
ICPEI’s ratings also consider the company’s adequate balance sheet
strength, which is offset somewhat by its exposure to weather-related
catastrophe losses and its narrow geographic concentration in the
Canadian Maritime provinces.

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
www.ambest.com
for more information
.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

Contacts

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

leverton

I have been involved with publishing and marketing for the past 37 years. My passion is helping people share their voice. I am able to do this through two important venues: One, with Area-Info.net where people can share everything from opinions to events to news. It is your choice! What do you want to share? Two, through a new program called America's Real Deal I am involved with to help business owners get their voice heard. For people who love to save money and earn while saving, there is a new program called the r network. You are provided with a card that entitles the user to automatic savings on more than 300,000 products. Learn more about the revv card today. This is by invitation only to be some of the first people to get this card. I schedule speaking engagements with community groups and business groups to share my passion about the importance of "sharing your voice". Contact me directly at lee@leeeverton.com for scheduling information.

You May Also Like