A.M. Best Affirms and Withdraws Ratings of L'Union Canadienne Compagnie D'Assurances 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 At the same time, A.M. Best has withdrawn the ratings of L’Union as its parent, Roins Financial Services Limited (RFSL), has requested to no longer participate in A.M. Best’s interactive rating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 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. Contact: A.M. Best Co. Joel Silverthorn, 908-439-2200, ext. 5120 Senior Financial Analyst firstname.lastname@example.org or Greg Williams, 908-439-2200, ext. 5815 Managing Senior Financial Analyst email@example.com or Rachelle Morrow, 908-439-2200, ext. 5378 Senior Manager, Public Relations firstname.lastname@example.org or Jim Peavy, 908-439-2200, ext. 5644 Assistant Vice President, Public Relations email@example.com
A.M. Best Affirms and Withdraws Ratings of L'Union Canadienne Compagnie D'Assurances
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