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Best has withdrawn the ratings in response to the companies’ request to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.
Senior Financial Analyst
439 2200, ext. 5304
Manager, Public Relations
908 439 2200, ext. 5159
Raymond Thomson, CPCU, ARe, ARM
908 439 2200, ext. 5621
Director, Public Relations
439 2200, ext. 5644