A.M. Best Affirms Credit Ratings of Intact Financial Corporation and Its Subsidiaries

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of the members of Intact Insurance Group (Intact Group), as well as the group’s separately rated member, Intact Farm Insurance Inc. (Intact Assurance agricole) (Quebec). Concurrently, A.M. Best has affirmed the Long-Term ICR of “a-” and the Long-Term Issue Credit Ratings (Long-Term IR) of the ultimate parent company, Intact Financial Corporation (IFC) (Ontario, Canada) [TSX: IFC]. The outlook of these Credit Ratings (ratings) is stable.

In addition, A.M. Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a+” of Atlantic Specialty Insurance Company (Atlantic Specialty) (New York, NY) and its rated affiliates. Collectively, these companies are referred to as OneBeacon Insurance Group (OneBeacon). A.M. Best also has affirmed the Long-Term ICRs of “bbb+” and the Long-Term IRs of OneBeacon Insurance Group, Ltd. (OneBeacon Ltd.) (Hamilton, Bermuda) and OneBeacon U.S. Holdings, Inc. (OneBeacon U.S.) (Delaware). The outlooks of these ratings are stable. (Please see link below for a detailed list of the companies and Long-Term IRs.)

The ratings of Intact Group reflect its balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

Intact Group maintains strong risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), with scores at the 99.6% level. Strong pre-tax operating earnings have outperformed the automobile industry composite over the most-recent five-year period, with operating earnings driven by net investment income and augmented by underwriting income. The favorable business profile reflects Intact Group’s position as Canada’s largest insurer of homes, autos and businesses, with strong brand name recognition across Canada.

The ratings of Intact Assurance agricole reflect its balance sheet strength, which A.M. Best categorizes as strongest, as well as its strong operating performance, neutral business profile and appropriate ERM.

Intact Assurance agricole maintains the strongest risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), with scores at the 99.6% level. Strong pre-tax operating earnings have outperformed the property industry composite by a wide margin over the most-recent five-year period, with operating earnings driven by underwriting income and augmented by net investment income. The neutral business profile reflects Intact Assurance agricole’s concentration, as 100% of its written premiums are derived from Quebec. Intact Assurance agricole maintains strong brand name recognition, writing agricultural risks within Quebec.

The ratings of OneBeacon reflect its members’ balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM.

The ratings also reflect the significant implicit and explicit support given its affiliation with Intact Group, the lead rating unit of IFC. The ratings consider the protection afforded through an adverse development cover, as well as the benefits OneBeacon receives from its integration into Intact Group’s scalable operations, which provide the group access to a common IT platform. Additional support includes the benefits of common investment management, reinsurance procurement and actuarial support, as well as corporate support, which includes legal, finance, ERM and modeling expertise. OneBeacon provides Intact Group with a U.S.-based specialty lines platform that augments Intact Group’s existing specialty lines. Together, these entities provide Intact Group with a broad range of product offerings operating through a multichannel distribution model. A.M. Best will continue to monitor the integration of OneBeacon Ltd., as Intact Group utilizes the entity to support its North American specialty lines platform.

For a complete listing of the members of Intact Financial Corporation’s FSRs, Long-Term ICRs and Long-Term IRs, please visit Intact Financial Corporation.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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A.M. Best

Gordon McLean, +1 908 439 2200, ext. 5304

Senior Financial Analyst

gordon.mclean@ambest.com

or

Raymond Thomson, CPCU, ARe, ARM

+1 908 439 2200, ext. 5621

Associate Director

raymond.thomson@ambest.com

or

Christopher Sharkey, +1 908 439 2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

or

Jim Peavy, +1 908 439 2200, ext. 5644

Director, Public Relations

james.peavy@ambest.com

Source: A.M. Best