AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Western Surety Company (WSC) (Regina, Saskatchewan, Canada).

The Credit Ratings (ratings) reflect WSC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The revision of the outlooks to negative from stable reflects continued volatility in WSC’s operating performance, with the company generating net income in only three of the past five years and an underwriting gain in just two years. Underwriting performance deteriorated further in 2025, with underwriting losses reaching their highest level during the five-year period. As a result, WSC’s underwriting metrics trail other Canadian surety writers and rated Canadian property/casualty insurers. Operating performance also has been somewhat volatile given the company’s limited scale. Additionally, WSC has experienced significant losses in the first quarter for the second consecutive year, a trend that historically has been atypical. The broader surety industry also has experienced elevated claims activity in recent years, but WSC’s continued underwriting volatility and weaker performance relative to peers remain key concerns. Negative rating action may occur if WSC’s underwriting performance fails to improve, operating metrics continue to underperform peers, or results fall short of the adequate operating assessment.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Media gallery

About The Author
Business Wire