OLDWICK, N.J.--(BUSINESS WIRE)--July 11, 2003--A.M. Best Co. has
upgraded the financial strength rating to A (Excellent) from A-
(Excellent) of Gerling Canada Insurance Company (Ontario), which will
be known as GCAN Insurance Company in the near future. The rating
outlook is stable.
The rating action follows the sale of Gerling Canada last month to
a group of Canadian financial and other private equity investors. The
sale removed the uncertainty surrounding the company while its former
parent company reorganized its operations.
The upgrade reflects Gerling Canada's superior operating
performance, excellent capitalization and its well defined business
position within the industrial insurance sector. The company's
underwriting results have consistently outperformed the industry.
Gerling Canada further benefits from its conservative operating
philosophy and experienced management team.
Partially offsetting these positive rating factors is the
competitive market conditions in the Canadian property/casualty
market. In addition, given the company's reinsurance dependence, it
will be challenged by raising reinsurance costs attributed to a
hardening reinsurance market. Going forward, the company will also be
servicing new debt through planned dividend payments.

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.