Fitch Ratings has affirmed the Insurer Financial Strength (
Fitch has also affirmed Intact's senior unsecured debt at 'A-', preferred shares at 'BBB,' and Issuer Default Rating (IDR) at 'A'. All of the ratings have a Stable Rating Outlook.
Key Rating Drivers
The affirmations reflect Intact's very strong business profile, capitalization and financial performance. The ratings also reflect the integration of
Intact's financial performance is consistently very strong. The company is the largest private P/C insurer in
Intact's financial leverage as of
In
Fitch has revised the status of RSA to 'Core' from 'Very Important' under our group rating criteria. This has no impact on current ratings as RSA's standalone credit profile of 'a+' allowed for a one notch uplift to the parent ratings.
Intact has demonstrated both willingness and ability to inject capital into RSA including capital ratio commitment to regulators, separate Ancillary Own Funds of
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Sustained combined ratio in the low 90's;
A change to capital navigator factor of 'aa' or better.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Sustained increase in financial leverage of 28% or higher;
Sustained reduction in fixed-charge coverage below 5.0x.
Best/Worst Case Rating Scenario
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.
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