OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Fenchurch General Insurance Company (Fenchurch) (Toronto, Canada). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Fenchurch’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
Fenchurch is a Canada-domiciled property/casualty insurer that was founded in 1981. Its main business lines are commercial auto and accident and sickness with minor exposure in habitational property. The company is owned by The Pandher Group through an intermediate holding company. The Pandher Group is a family office with diverse insurance and non-insurance lines of business focused on North America.
Fenchurch’s balance sheet strength assessment is supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to support the company’s strategic growth initiatives going forward. Additionally, the balance sheet strength assessment reflects Fenchurch’s strong liquidity profile and conservative investment strategy. Furthermore, the company’s balance sheet has benefited from the implicit and explicit support provided by The Pandher Group, which has contributed approximately $44 million in capital to Fenchurch since its acquisition in 2021.
Fenchurch’s operating performance is assessed as adequate, driven by its recent entry into the commercial auto market as well as the right-sizing of its current book of business. AM Best expects these strategic initiatives to generate improved operating results over the intermediate term. AM Best assesses the company’s business profile as limited due to the geographic concentration of business in Ontario. Additionally, the limited business profile assessment also reflects the company’s ongoing expansion into the commercial auto and property markets. The company’s ERM program is assessed as appropriate given the overall risk profile of the organization. Fenchurch has structured its limits and exposures on its policies to minimize the requirements for reinsurance. However, the company expects to purchase reinsurance for most new lines of business going forward, further solidifying its risk management framework.
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