AM Best Affirms Credit Ratings of The Wawanesa Mutual Insurance Company and Wawanesa Life Insurance Company

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OLDWICK, N.J. — AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) of The Wawanesa Mutual Insurance Company (Wawanesa Mutual). At the same time, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Wawanesa Life Insurance Company (Wawanesa Life). The outlook of these Credit Ratings (ratings) is stable. Both companies are domiciled in Winnipeg, Manitoba, Canada.

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The ratings of Wawanesa Mutual reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

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Wawanesa Mutual’s balance sheet strength is underpinned by its risk-adjusted capitalization, which was at the strongest level at year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). Wawanesa Mutual’s risk-adjusted capitalization reflects growth in its equity over the long-term. The company’s balance sheet strength is further supported by its conservative underwriting leverage, sound liquidity and a comprehensive reinsurance program. Offsetting balance sheet strength factors include areas of adverse reserve development and elevated common stock leverage. Wawanesa Mutual has a track record of adequate operating performance.

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Viewed over a five-year period, Wawanesa Mutual has demonstrated improvement in underwriting, reporting four years of underwriting profitability. Underwriting performance in 2025 benefited from improvements in personal auto with positive trends in Ontario and Quebec. The underwriting performance turnaround in 2025 also reflects a series of targeted initiatives to improve claims and pricing. The company introduced a dedicated claims insights team and fraud analytics team, implemented management actions and process changes to stabilize reserve volatility, incorporated a wildfire grading index, and continued to invest heavily in pricing sophistication.

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The ratings of Wawanesa Life reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM.

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Wawanesa Life’s balance sheet strength is reflective of the strongest level of risk-adjusted capitalization, as measured by BCAR, and supportive of its business, insurance and investment risks due to organic earnings growth, low use of reinsurance, and overall good credit quality of invested assets. Wawanesa Life has reported net income in four of the past five years; however, there is variability by business segment with individual life business providing stable, profitable earnings, while the group business has been more volatile. Performance differences between segments are notable with the individual products generating long term earnings, providing resilience and financial strength across market cycles, while the group insurance segment has been weaker and more volatile. Wawanesa Life receives rating enhancement given its strategic role in providing life, annuity, accident and sickness and disability insurance products, which complement Wawanesa Mutual’s property/casualty product offerings.

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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

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web page. For additional information regarding the use and limitations of Credit Rating

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opinions, please view

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. 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

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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

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Contacts

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Michael Buckley

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Senior Financial Analyst

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+1 908 882 1677

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Rosemarie Mirabella

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Director

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+1 908 882 2125

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Christopher Sharkey

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Associate Director, Public Relations

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+1 908 882 2310

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Al Slavin

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Senior Public Relations Specialist

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+1 908 882 2318

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