A.M. Best Company to withdraw public data ratings in Canada

A.M. Best Co. is planning to withdraw its Canadian public data (PD) rating assignments at the end of August 2010.The rating agency currently has 52 PD rating assignments. A.M. Best said its move reflected increasing challenges facing the Canadian property and casualty environment. These include upcoming changes in accounting standards and active regulatory environment (especially in provinces with private automobile insurance systems). “In addition, volatility in the investment markets and a trend of more frequent and severe weather-related events make it more difficult to assign ratings based solely on public data,” A.M. Best reported. Current PD-rated property and casualty insurers will be assigned a category NR-5 (not formally followed) to the financial strength ratings and an “nr” to the issuer credit ratings. The PD ratings do not include analysis based on routine interaction with insurance company management, ongoing monitoring of non-public financial or strategic information or any affiliations that property/casualty insurers have with parents/affiliates, A.M. Best said.  A.M. Best will continue to maintain its interactive ratings with Canadian property and casualty and life insurers, the company said in a release. Currently, A.M. Best interactively rates 175 companies inclusive of individual property and casualty, life companies and Canadian branches.PD ratings reflect a quantitative analysis of each company’s results based on publicly available financial information at a specific point in time.