Royal & SunAlliance Canada rating affirmed: A.M. Best

Royal & SunAlliance Insurance Pool of Canada has seen its “A-” (excellent) rating affirmed by A.M. Best, with the outlook negative.The rating reflects improvement in underwriting results in 2003, as well as the strong capitalization and market position the pool enjoys as a result of its core position with parent company Royal & SunAlliance Insurance Group.Offsetting this is the challenge the pool faces as a result of its exposure to Ontario auto. “High claim costs and lack of significant regulatory reform will continue to adversely impact underwriting results,” A.M. Best notes.The pool includes Royal & SunAlliance Insurance Co. of Canada, Western Assurance Co. and Quebec Assurance Co.