A.M. Best has upgraded the financial strength rating to “A (Excellent)” and the issuer credit rating to “a” from “a-” of Toyota Motor Insurance Company (TMIC). The outlook for both ratings has been revised to stable from positive.
In a recent statement, A.M. Best said: “The ratings reflect TMIC’s excellent risk-adjusted capitalisation and consistently strong operating results driven by underwriting income and complemented by a steady flow of investment income.”
The positive attributes are further supported by TMIC’s solid cash flow, liquidity and leverage metrics. TMIC also benefits from support provided by its ultimate parent, Toyota Motor Corporation.
TMIC plays a strategic role within the Toyota organisation by providing vehicle service agreements, guaranteed auto protection agreements and excess wear and use coverage sold through Toyota, Lexus and affiliated dealerships throughout the US.
“Somewhat offsetting these positive rating factors are TMIC’s limited business profile as a single parent captive as well as its reliance on sales at the parent level for premium generation.”
