Wawanesa rating affirmed by A.M. Best

Rating agency A.M. Best has affirmed the A+ (Excellent) rating of Winnipeg-based Wawanesa Mutual Insurance Company and its U.S. subsidiary, San Diego-based Wawanesa General. Outlook for the rating is stable.The rating reflects strong capitalization and operating performance, as well as Wawanesa’s “long-standing market position in the Canadian p&c industry”. Conservative reserving and consistent profitability are also highlighted, as are the company’s use of technology to gain efficiency, customer service record and strong relationship with its broker network. Offsetting factors include challenges to profitability in the Ontario, Alberta and Atlantic Canada auto markets. Also noted is Wawanesa General’s concentration of business in California, where regulatory and legal headaches abound, along with catastrophe exposures. However, the U.S. operation has historically produced strong operating results. Although underwriting results for Wawanesa General have been lackluster, A.M best expects these to improve in time.