Toyota Motor Insurance Company (TMIC) has had its “A” ratings for both financial strength and long-term issuer credit affirmed by A.M. Best.
Furthermore, TMIC received a status of “stable”, particularly in its balance sheets, which were reported to be at the strongest level of A.M. Best’s Capital Adequacy Ratio, owing to TMIC’s implementation of risk-adjusted capitalisation, low underwriting leverage and growth in policyholders’ surplus.
Other assessed areas include operating performance, business profile and enterprise risk management (ERM).
TMIC’s operating performance was categorised as “adequate”, predominantly a result of decreasing profitability from losses in its guaranteed auto protection business.
A.M. Best assessed TMIC’s ERM as “appropriate”, as a subsidiary and captive of Toyota Motor Insurance Services that has adopted the same “robust and formal corporate management practices”.
Overall, A.M. Best’s rating with a “stable outlook” expects that TMIC will uphold its strengths and continue to build on its operating performance and business profile.
