The ratings of ICPEI were placed under review with negative implications in
The rating actions follow the completion of the acquisition and A.M. Bestís discussions with the new majority owner, EFH, regarding new management plans for ICPEI. The rating affirmations for ICPEI are based upon its good risk-adjusted capitalization and generally favorable operating performance. The affirmations also reflect the implicit and explicit support ICPEI will now receive from EFH, including investment and actuarial guidance as well as reinsurance protection.
These positive rating factors are partially offset by ICPEIís exposure to weather-related catastrophe losses and its geographic concentration in the Canadian Maritime provinces.
Negative rating pressure could occur if there is deterioration in ICPEIís risk-adjusted capitalization or an unfavorable earnings trend develops. Upward rating movement is not likely in the near term.
The methodology used in determining these ratings is Bestís Credit Rating Methodology, which provides a comprehensive explanation of A.M. Bestís rating process and contains the different rating criteria employed in the rating process. Bestís Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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Jacqalene Lentz,908-439-2200, ext. 5762
Senior Financial Analyst
Assistant Vice President
Manager, Public Relations
Assistant Vice President, Public Relations