A.M. Best Co. has affirmed the financial strength ratings of of Regina-based SGI Canada and its subsidiaries, SGI Canada Insurance Services Ltd. and the Insurance Co. of Prince Edward Island.

Additionally, A.M. Best has affirmed the financial strength rating of indirect subsidiary Coachman Insurance Co. of Toronto.

A.M. Best says the rating outlook for SGI Canada is stable. The outlook for SCI Canada Insurance Services has been revised to positive from negative; the outlook for Insurance Co. of PEI has been revised to positive from stable; and the outlook for Coachman has been revised to stable from negative.

The affirmation of the ratings reflects each company’s risk-adjusted capitalization, improved operating performance, strong business profile and position within their respective markets, as well as the centralization of investment management, reinsurance procurement and management support provided by SGI Canada.

In addition, A.M. Best says these companies benefit from the explicit financial support of their ultimate parent, the province of Saskatchewan.

The ratings agency adds that these strengths are partially offset by each company’s concentration of risk within their respective home province, which subjects them to local government regulations and market conditions as well as catastrophic loss from weather-related events. The group’s experienced management team and comprehensive reinsurance program backed by quality reinsurers partially mitigates these risks.

In addition, A.M. Best views favorably SGI Canada’s initiatives to reduce its concentration of risk by diversifying its product line in Ontario and expanding into other provinces.