AM Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Sandbox Mutual Insurance Company (Sandbox) (Saskatoon, SK).

The under review with developing implications status of these Credit Ratings (ratings) reflects a decline in Sandbox’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and pressure on the company’s balance sheet strength assessment driven by the company’s strong growth in recent years. This growth has been driven in large part through managing general agent (MGA) partnerships, as well as organic growth in Sandbox’s own book of business, as the company executes its business plan. AM Best notes that Sandbox is in the process of finalizing a reinsurance arrangement that is expected to improve capitalization and provide capital relief. The ratings will remain under review pending AM Best’s evaluation and analysis of management’s initiatives to ensure capitalization and overall balance sheet strength remain appropriately assessed.

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.

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