A.M. Best Affirms and Withdraws Ratings of L'Union Canadienne Compagnie D'Assurances

  A.M. Best Affirms and Withdraws Ratings of L'Union Canadienne Compagnie

Business Wire

OLDWICK, N.J. -- April 11, 2013

A.M. Best Co. has removed from under review with developing implications and
affirmed the financial strength rating of B+ (Good) and the issuer credit
rating of "bbb-" of L'Union Canadienne Compagnie D'Assurances (L’Union)
(Quebec, Canada). The outlook assigned to both ratings is stable. At the same
time, A.M. Best has withdrawn the ratings of L’Union as its parent, Roins
Financial Services Limited (RFSL), has requested to no longer participate in
A.M. Best’s interactive rating process.

The rating actions follow the recent acquisition of L’Union by RFSL, a
Canadian holding company whose ultimate parent is RSA Insurance Group plc
(RSA) [LSE: RSA] (United Kingdom). Collectively, all of the insurance entities
in Canada are referred to as the RSA Group of Canada.

The ratings and outlook reflect L’Union's adequate risk-adjusted
capitalization and historically profitable operating performance. The ratings
also consider L'Union's new role within the RSA Group of Canada, the benefit
it receives through services provided by RFSL and affiliates and its
participation in the corporate reinsurance program.

Partially offsetting these rating strengths are L'Union’s elevated leverage
position, geographic concentration in Quebec, thinned post acquisition capital
position and strong competitive market pressures in the current soft market.

As L’Union integrates into the RSA Group of Canada and assumes its role within
the group, it may be challenged to balance its new responsibilities that could
potentially affect its long-term profitability.

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

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.


A.M. Best Co.
Joel Silverthorn, 908-439-2200, ext. 5120
Senior Financial Analyst
Greg Williams, 908-439-2200, ext. 5815
Managing Senior Financial Analyst
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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