A.M. Best Affirms Credit Ratings for Economical Mutual Insurance Company and Waterloo Insurance Company; Withdraws Credit Ratings of Waterloo Insurance Company
OLDWICK, N.J.--(BUSINESS WIRE)--Nov 14, 2018--A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Economical Mutual Insurance Company (EMIC) and its wholly owned subsidiary, Waterloo Insurance Company (WIC). Both companies are domiciled in Waterloo, Ontario, Canada. The outlook of these Credit Ratings (ratings) remains stable.
The ratings reflect EMIC and WIC’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.
Following a brand consolidation, A.M. Best has withdrawn the ratings of WIC upon management’s request for that entity to no longer participate in A.M. Best’s interactive rating process, as all future broker-distributed business will be written or renewed on EMIC paper.
Resources required to support the demutualization process and investments in other strategic initiatives, as well as weather-related events have impacted EMICs balance sheet and operating performance in recent years. Nevertheless, A.M. Best expects capital expenditures and other investments in the company’s operations to yield long-term benefits, despite recent hurdles. Evidence of management’s commitment to improving and transforming its operations have been noted in systems upgrades, brand consolidations and development of a direct distribution method.
While operations are expected to return to more historical norms in the near- to mid-term, A.M. Best recognizes that continued depletion of capital or further deterioration of performance at the current rate is not sustainable in the long-term. Further monitoring by the A.M. Best analytical team will remain a priority as EMIC advances through the demutualization process.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES FINANCE INSURANCE
SOURCE: A.M. Best
Copyright Business Wire 2018.
PUB: 11/14/2018 04:50 PM/DISC: 11/14/2018 04:50 PM