Peace Hills upgraded by A.M. Best

Alberta-based Peace Hills General Insurance Co. has been upgraded to “B” from “B-” with a stable outlook by A.M. Best.The rating agency says Peace Hills shows improved capitalization and strong profitability in the recent years, building on strong operations, management and reserving practices. The insurer’s risk-adjusted capitalization has improved on the back of rate increases and more disciplined underwriting over the last two years, with specific improvement in auto line. “The company’s experienced management team has historically produced underwriting ratios below industry averages while maintaining slight redundancies on its loss reserves,” the rater adds.Offsetting these positive factors is a below-industry-average liquidity position, as well as the company’s concentration in Alberta, where the rater has concerns over profitability of the auto product following government reform.