A.M. Best withdraws public data ratings from Canadian market

A.M. Best Co. has officially withdrawn its Canadian public data ratings. A category NR-5 (Not Formally Followed) has been assigned to the financial strength ratings and an “nr” to the issuer credit ratings of 51 formerly PD rated Canadian property/casualty insurers.”The withdrawal of the PD ratings is a reflection of the increasing challenges facing the Canadian property/casualty industry,” an AM Best release says.”These challenges include upcoming changes in accounting standards, an active regulatory environment, especially in provinces with private automobile insurance systems, a trend of more frequent and severe weather-related events and continued volatility in the investment markets.”As a result, the release continues, it has become more difficult to assign ratings based solely on public data without interaction with insurance company management.Among the formerly PD rated insurers are•Aviva Insurance Company of Canada;•The Dominion of Canada General Insurance Company;•Economical Mutual Insurance Company; •Gore Mutual Insurance Company; and •TD General Insurance Company and TD Home and Auto Insurance Company.