What’s new: In brief (April 03, 2005)

By Canadian Underwriter | April 3, 2005 | Last updated on October 30, 2024
2 min read

Standard & Poor’s says the “BBB+” financial strength rating of St. Paul Travelers Cos. Inc. will not be impacted by news the company will divest itself of its ownership interest in Nuveen Investments Inc. St. Paul Travelers will now record Nuveen as a discontinued operations and as such record a tax charge of US$690 million in the first quarter of 2005. S&P says such a scenario was taken into account when it affirmed the company’s rating, with a stable outlook, in January of this year.

A.M. Best has released a methodology report on its “capital adequacy ratio” (BCAR) for Canadian p&c insurers and the implications for the BCAR on insurer financial strength ratings. The methodology includes balance sheet “stress tests” included in the BCAR assessment such as above-normal catastrophes, equity market declines and rising interest rates. Capital required is calculated based on investment risk, credit risk and underwriting risk, the rater explains. As well, the BCAR extends beyond regulators’ minimum capital test (MCT) to look at future premium risk for the upcoming year.

The deadline for registering to the Canadian Insurance Accountants Association (CIAA) “Fundamentals of Accounting” course is fast approaching. Deadline for applications is April 16, with the course to run June 5-10 at McMaster University in Hamilton, Ontario. Also, the next CIAA luncheon with speaker is set for April 20 at Toronto’s InterContinental Hotel, with the topic “Achieving Operational Excellence”. And, April 24-29, the CIAA will host “Staying Ahead of the Curve: Winning Strategies for the P&C Industry” at the Glenerin Inn in Mississauga. For more information on CIAA events, visit www.ciaa.org, or contact Catherine Fleming at 416-971-7800, email: catherinef@taylorenterprises.com.

Canadian Underwriter