News Column

A.M. Best Removes Ratings of The Insurance Company of Prince Edward Island From Under Review

July 2, 2014



OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Besthas removed from under review with negative implications and affirmed the financial strength rating of B++ (Good) and the issuer credit rating of ďbbbĒ of The Insurance Company of Prince Edward Island(ICPEI) (Prince Edward Island, Canada). The outlook assigned to both ratings is stable.

The ratings of ICPEI were placed under review with negative implications in April 2014 following the disclosure that EGI Financial Holdings Inc. (EFH) (TSX:EFH) had entered into a definitive agreement with SGI Canada (SGI) to acquire SGIís share of ICPEI.

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.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2014 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.



A.M. Best

Jacqalene Lentz,908-439-2200, ext. 5762

Senior Financial Analyst

jacqalene.lentz@ambest.com

or

Greg Williams,908-439-2200, ext. 5815

Assistant Vice President

greg.williams@ambest.com

or

Christopher Sharkey, 908-439-2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

or

Jim Peavy, 908-439-2200, ext. 5644

Assistant Vice President, Public Relations

james.peavy@ambest.com

Source: A.M. Best


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