OLDWICK, NEW JERSEY--A.M. Best Co. has placed the financial strength rating of A- (Excellent) of Gerling Canada Insurance Company (Toronto) under review with developing implications. In March, Gerling Canada in tandem with its parent company, Gerling Konzern Allgemeine (Germany), had its rating affirmed; however, the outlook was changed to negative from stable.
The current under review status reflects the pending sale of Gerling Canada to a group of Canadian financial and other private equity investors. The transaction is organized through Newport Partners, a Toronto based investment company. Once the sale is finalized, it will resolve the uncertainty surrounding Gerling Canada's future due to issues affecting its ultimate parent company, Gerling Konzern Beteiligungs-AG (Germany).
A.M. Best is in the process of due diligence on the sales transaction and is in regular discussions with Gerling Canada's management. A.M. Best will assign Gerling Canada a stand-alone rating upon completion of the sale.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.