A.M. Best affirms Aviva Canada’s ‘A’ rating, but continues to monitor executive changes at parent company

A.M. Best Co. has confirmed the financial strength ratings of A (Excellent) and issuer credit ratings (ICR) of “a+” of Aviva Insurance Company of Canada and its affiliates.

The ratings remain under review in light of the recent executive changes at the parent company, Aviva plc (United Kingdom).

Aviva Canada subsidiaries captured by A.M. Best’s rating include Elite Insurance Company, Traders General Insurance Company, Pilot Insurance Company, Scottish & York Insurance Company Limited and S&Y Insurance Company.

Aviva’s ratings were placed under review with negative implications in December 2011 because of the continued negative developments regarding the eurozone sovereign debt crisis.

“Subsequently, A.M. Best has developed more confidence in Aviva plc’s capital position in relation to its eurozone exposure,” A.M. Best announced in a release. “However, the ratings remain under review due to the recently announced strategic evaluation of Aviva plc’s businesses and changes to its senior management, especially the departure of the chief executive officer [Andrew Moss].”

Aviva plc is currently conducting a strategic review of its businesses. A.M. Best notes that the group’s intention is to improve capital allocation between business segments and may look to possibly exit certain markets or classes of business that could have a positive impact over the medium term.

“A.M. Best will continue to monitor the situation and expects to resolve the under review status once there is more clarity with regard to Aviva plc’s ongoing business strategy,” the ratings agency noted in a statement.