AM Best Confirms Toyota Motor Insurance Company Credit Ratings

OLDWICK, NJ–(BUSINESS WIRE)–AM Best Affirmed Toyota Motor Insurance Company (TMIC) (Cedar Rapids, IA) financial strength rating of A (Excellent) and issuer long-term credit rating of “a” (Excellent). The outlook for these Credit Ratings (ratings) is stable.

The ratings reflect TMIC’s balance sheet strength, which AM Best rates as the strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

TMIC’s balance sheet strength is supported by its highest level of risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR), low underwriting and investment leverage ratios, excellent liquidity metrics and steady organic growth in surplus, reflecting favorable operating results, particularly over the past two years and into 2022. The proper assessment of TMIC’s operating performance is supported by performance that outpaced the industry over a five- and ten-year average, with results continuing to be positively impacted by lower coverage frequency and severity trends, primarily due to reduced vehicle utilization, as well as supply chain shortages, which subsequently increased demand for used vehicles, thereby increasing sales and premiums written. TMIC’s neutral business profile benefits from its relationship with its U.S. parent company, Toyota Motor Credit Corporation (TMCC), partially offset by its dependence on TMCC and the same factors that can negatively impact the automotive industry . The company’s proper ERM uses traditional risk management techniques specific to the automotive industry, and TMIC benefits from TMCC’s enterprise-wide risk management approach to capital management, innovation and security protocols.

The stable outlook reflects AM Best’s expectation that TMIC will maintain its strongest balance sheet strength rating, adequate operating performance and a neutral business profile without deviating from its risk profile as the automotive market navigates. through supply shortages and carbon neutrality.

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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit AM Best’s Recent Rating Activity web page. For more information on the use and limitations of credit rating opinions, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best’s Credit Scores, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see the Guide to Proper Use of Best’s Best ratings and reviews.

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 more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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Justin D. O'Neill