Wednesday June 1, 2011
Analysts reviewing Intact ratings
Analysts have placed the financial strength ratings of Intact Financial Corp. under review with negative implications citing the funding structure for its purchase of AXA Canada (Thompson’s, June 6).
A.M. Best noted that Intact intends to finance the $2.6bn acquisition through $500m of excess capital from its operating subsidiaries along with about $800m of common equity and $1.3bn worth of unsecured credit facilities that are anticipated to be mostly replaced by the issuance of medium-term notes and preferred shares.
To read the full story, please go to http://www.thompsonsnews.com/story.asp?story=1485
Industry news is provided by Canadian Insurance Magazine. Visit their website at www.cdnins.com .