Standard & Poor’s Ratings Services has upgraded its outlook on Lindsey Morden Group Inc. to stable from negative, and it affirmed its rating on the company.

With the sale of the U.S. third-party administrator business completed, Standard & Poor’s says it believes LMG’s ongoing financial results should at least stabilize. And, it notes that operating results through the third quarter of 2004 were on par with comparable prior-year period results.

LMG is a global, independent claims service organization, based in Toronto. Through its subsidiaries, the company conducts business in Canada, the U.S., the U.K., continental Europe, the Far East, Latin America, and the Middle East. Earnings are derived primarily from the U.K. (46%), International (27%), European (16%), and Canadian (10%) business segments.

In other ratings news, Dominion Bond Rating Service has confirmed it BBB rating for Kingsway Financial Services Inc. It says the ratings reflect consistently good execution of the company’s strategy to apply its specialized insurance capabilities to regional markets in Canada and the U.S. Underwriting performance has improved over the first nine months of 2004, reflecting stable pricing in Kingsway’s Ontario auto business as well as a lower frequency of claims.

DBRS says that the company continues to limit its volume growth to those markets where risk is appropriately priced. In Alberta, where proposed new regulations are not industry-friendly, Kingsway is simply choosing to write less business, it observes.