A.M. Best Co. has affirmed the rating of A+ (Superior) of ING Canada insurance group of companies.

“This rating reflects ING Canada’s excellent operating performance, strong capitalization, and its leading position in the Canadian property/casualty market,” the Oldwick, N.J. insurance rating company said in a news release. “The group’s underwriting and investment results have consistently outperformed the Canadian property/casualty industry.”

The rating applies to the group, which operates under a pooling arrangement, and consists of Belair Insurance Company Inc., ING Insurance Company of Canada, ING Novex Insurance Company of Canada, ING Western Union Insurance Company and The Nordic Insurance Company of Canada. A.M. Best has assigned a stable outlook to the group’s rating.

A.M. Best said ING Canada has a strong management team that relies on “disciplined underwriting and pricing, conservative reserving and efficient in-house claims handling.” It praised the financial flexibility that the group receives as a subsidiary of ING Group NV, a global organization that provides integrated financial products and services in 60 countries.

But A.M. Best also cautioned that the group’s strengths are partially offset by the adverse underwriting conditions that exist in automobile lines, particularly in Ontario. “Higher rates and enactment of legislation passed in late 2002 should help mitigate this concern; however, A.M. Best does not anticipate significant improvement in the near term.

“ING Canada is also being challenged to maintain strong investment returns and realized gains while investment markets remain weak. Capital is highly leveraged as a result of rapid premium growth and prior accident year reserve strengthening. Capital growth could be limited in the near term if ING Canada is asked to make dividend payments to its parent. In addition, price increases have begun to level off while claims costs continue to increase, particularly in automobile lines in Ontario.”