Gerling Canada to be sold

Rating agency A.M. Best has placed under review the financial strength rating of Gerling Canada Insurance Company (rated A-, excellent). The review follows news that the company’s German parent, Gerling Konzern Allgemeine, will sell the operation to a group of Canadian investors.”The current under review status reflects the pending sale of Gerling Canada to a group of Canadian financial and other private equity investors,” states an A.M. Best release. “The transaction is organized through Newport Partners, a Toronto based investment company.”Once complete, A.M. Best says the uncertainty about the company’s future should be resolved.The ultimate parent, Gerling Konzern Beteiligungs-AG has been under pressure, having sold its reinsurance operations to a run-off company, and in the process of selling off its primary operations piecemeal.A.M. Best says it is in discussions with the buyers of Gerling Canada, and will assign the company a stand-alone rating once the sale is complete.