The American Road Insurance Company (TARIC) has had its financial strength rating of A (Excellent) and its long-term issuer credit rating of “a” affirmed by A.M. Best.
The outlook of the Michigan-based captive’s credit ratings is stable.
The ratings are reflective of TARIC’s balance sheet strength, categorised by A.M. Best as strongest, in addition to its adequate operating performance, neutral business profile and appropriate enterprise risk management.
A single parent captive insurer wholly owned by Ford Motor Credit Company, which is an indirect subsidiary of Ford Motor Company, TARIC provides a range of coverages to Ford and its subsidiaries in the US and Canada.
TARIC primarily provides automobile floor plan collateral protection, inland marine, extended service business, and commercial auto liability.
According to A.M. Best, the efficiencies gained by ready and immediate access to business as a strength, but TARIC’s reliance on its parent for premium revenues makes the company susceptible to changes in macroeconomic conditions and market forces that impact the automobile.
Downward movement in the ratings and or ratings outlooks may result from a significant deterioration in operating performance or risk-adjusted capitalisation.
Negative rating action may also occur if the credit profile of Ford deteriorates.
