AM Best has downgraded the financial strength rating of Co-operators General Insurance Company from A to B++.
The ratings move also saw its subsidiaries IFS ratings downgraded to B+ from A-, and Co-operators of Canada Reinsurance were assigned an IFS rating of B+.
The subsidiaries affected by the move include; Sovereign General Insurance Company; L'Union Candienne Compagnie d'assurances and COSECO Insurance Company.
AM Best said the downgrades reflected Co-operators General's deteriorated capital position and unfavourable underwriting trends.
Poor underwriting results had also eroded Co-operators General's strong surplus position, and thus, its level of capitalization has fallen, it said.
