AM Best has removed from under review with negative implications and affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of the Wynward Insurance Group (Wynward) (Winnipeg, Manitoba, Canada). The outlook assigned to both ratings is stable.
The ratings had been placed under review with negative implications in late 2014 as a result of the regression in the group’s risk-adjusted capital position caused by operating results that year, which like the industry, experienced a heightened frequency of weather-related loss events throughout the year. Wynward’s results were also impacted by several large commercial property losses.
Wynward’s ratings have been removed from under review, as the group’s capital position has been revitalized after becoming wholly owned by one of its founders, James Richardson & Sons, Limited, in June 2015. Wynward immediately issued its new parent $15 million in equity, which fortified the company’s capital position. In addition, Wynward’s underwriting and operating performance in 2015 has returned to the company’s traditionally profitable levels.
The ratings are supported by Wynward’s historically consistent and solid operating performance, conservative reserving practices, long-standing market presence, steady investment stream, strong capitalization, supportive parent and a seasoned management team. Partially offsetting these positive factors are the continued competitive pricing pressures throughout Canada, the company’s susceptibility to catastrophic events (severe and frequent) in the territories in which it writes, and the recent increase in losses and reserve development that hampered underwriting performance in 2014.
