GCAN Insurance Company

June 28, 2005 15:30 ET

A.M. Best Affirms Rating of GCAN Insurance Company

OLDWICK, N.J.--(CCNMatthews - Jun 28, 2005) -

A.M. Best Co. has affirmed the financial strength rating of A (Excellent) for GCAN Insurance Company (Toronto, Canada). The rating outlook is stable.

The rating of GCAN reflects its excellent level of capitalization, strong underwriting and operating results and leading market position as a commercial lines insurer in Canada. GCAN has a long standing history of superior underwriting and operating performance, which has supported its internal growth and ability to comfortably expand its premium writings. This performance record over the years has exceeded its market peers and the greater insurance industry.

Partially offsetting these positive rating factors will be the competitive conditions created by the approaching down cycle of the insurance industry. In addition, volatility in the world investment markets will continue to pose a challenge to management to earn past levels of investment yields. Furthermore, as a commercial insurer, GCAN utilizes a significant amount of reinsurance and maintains a comprehensive reinsurance program with quality players. This reinsurance shields the company and its capitalization from large shock loses.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.

For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies and A.M. Best groups, please visit http://www.ambest.com/pc.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.

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