A.M. Best has affirmed the financial strength rating of “A” (Excellent) and long-term issuer credit rating of “a” of Toyota Motor Insurance Company (TMIC).
These ratings were said to reflect the insurance underwriter’s balance sheet strength, operating performance, business profile and enterprise risk management.
As a wholly owned subsidiary and single-parent captive of Toyota Motor Insurance Services, balance sheet strength is supported by risk-adjusted capitalisation, low underwriting leverage, excellent liquidity and positive cash flows.
A.M. Best also affirmed the outlook of both credit ratings is stable, with the expectation that TMIC will maintain the strongest level of balance sheet assessment, as measured by A.M. Best’s Capital Adequacy Ratio.
Despite the COVID-19 pandemic occurring throughout 2020, consumer confidence and demand for auto products had returned by Q4 to demonstrate the effect of rate increases and underwriting initiatives on TMIC’s guaranteed auto protection business.
