OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to The Insurance Company of Prince Edward Island (ICPEI) (Charlottetown, Canada). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect ICPEI’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings of ICPEI reflect the company’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by a capital injection of CAD 70 million from its parent company, Fédération des Caisses Desjardins du Québec (Desjardins). The additional capital should support ICPEI’s growth plans to accept larger risks, as well as develop new products and markets. Over the past five years, ICPEI has displayed a profitability trend that is expected to continue. ICPEI is key to Desjardins’ strategic plans to expand its commercial lines business. ICPEI's broker network will complement Desjardins’ distribution channels, enabling the group to accommodate business owners according to their channel preferences (direct, agency, and now brokers) and the complexity of their needs.
The ratings also consider the benefits derived from the parent holding company, Desjardins Group. Desjardins Group is the largest financial cooperative group in North America and is an industry leader in terms of capital and liquidity strength. ICPEI now benefits from the Desjardins Group's strong financial backing and its robust support functions. Desjardins' financial strength will bolster ICPEI's development and growth.
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