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A.M. Best Affirms Credit Ratings of Economical Mutual Insurance Company and Waterloo Insurance CompanyA.M. Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "a-" of Economical Mutual Insurance Company (EMIC) and its wholly owned subsidiary, Waterloo Insurance Company (WIC). Both companies are domiciled in Waterloo, Ontario, Canada. The outlook of these Credit Ratings (ratings) remains stable. The ratings reflect the consolidated results of EMIC and its subsidiaries, collectively known as Economical Insurance (Economical). Through focused marketing and branding strategies, a disciplined underwriting philosophy and pricing segmentation, Economical has produced historically profitable operating performance and maintained a solid risk-adjusted capital position. Economical also possesses a diversified product offering and has an established Canadian market presence nationally, but most notably in Ontario, British Columbia and Alberta. Furthermore, the group has recently broadened its distribution channel to include direct-to-consumer with the introduction of its Sonnet brand of insurance. Partially offsetting these positive rating factors are the group's somewhat elevated expense ratios due to thelaunch of Sonnet and replacement of their policy administration system, susceptibility to weather-related losses in its geographic footprint, and competitive market conditions (as well as legislative in Ontario) throughout its underwriting territories, combined with lower investment yields - a product of current financial market conditions. 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. A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
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