Moody’s Investors Service has affirmed the ratings of ING Canada, Inc. and its operating subsidiaries following the downgrade of ING Groep N.V. The outlook for ING Canada remains stable.

Moody’s says that it based its rating affirmation of ING Canada on the underlying financial strength of the company’s insurance subsidiaries.

According to the ratings agency, ING Canada has an excellent market position in the highly fragmented Canadian P&C industry, an underwriting and risk management discipline which produces good operating results year-over-year, strong reserve adequacy with consistently favorable prior-year development, and excellent financial flexibility.

Partially offsetting these strengths are a narrow business model that has a significant weighting towards Canadian personal auto insurance, relatively weak capitalization, a sizable exposure to preferred shares issued by Canadian financial institutions, and a reliance on third party brokers for distribution, Moody’s says.

ING Canada’s ratings and outlook did not change because its ratings are based on its stand-alone financial strength and do not incorporate any support from its majority owner, ING Groep N.V., which holds a 70% stake in the Canadian insurer. Since ING Canada’s ratings are not directly influenced by ING Groep N.V., Tuesday’s action on the majority owner do not impact Moody’s view of ING Canada’s credit profile.

Toronto-based ING Canada Inc. is one of Canada’s largest P&C insurance providers. The company reported assets of $10.3 billion, shareholders’ equity of $3.1 billion, and year-to-date net income of $135 million at June 30.