Wawanesa Mutual rating affirmed on “superior capitalization”

A.M. Best was bullish on Winnipeg-based Wawanesa Mutual Insurance Co., affirming its “A+” (superior) rating, and that of its U.S. subsidiaries, Wawanesa General Insurance Co. and Wawanesa Mutual (U.S. branch), with both ratings carrying stable outlooks.In its report, A.M. Best notes the “superior level of capitalization” and “historically strong operating performance” of Wawanesa Mutual and Wawanesa General. Specifically, Wawanesa Mutual ranks first among Canadian p&c companies in terms of capital and surplus, and ranks second in net written premiums. “The company’s large surplus base is supported by strong operating profitability and significant unrealized gains in its investment portfolio,” the rater notes. “Profitability has been achieved through above-average investment returns, conservative loss reserving, efficient expense management and responsive customer service and claims handling.”The company’s strong broker relations and regional presence are also listed as positive factors.For Wawanesa Mutual (U.S. branch), which ceased writing new business in 1997, but continues to service a renewal book of preferred personal auto and property in California, strong operating results and capitalization are reasons for the affirmation. Wawanesa General, which writes new business on a direct basis, has had weak results, but is slowly improving and the rater expects this improvement to continue.Offsetting the company’s success are the challenges inherent in the personal auto market, specifically in Ontario, Alberta and California.The “A” rating of Wawanesa Life Insurance Co. was also affirmed with a stable outlook.