AM Best Affirms Credit Ratings of Toyota Motor Insurance Company
September 12 2024 - 12:20PM
Business Wire
AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a”
(Excellent) of Toyota Motor Insurance Company (TMIC) (Chandler,
AZ). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect TMIC’s balance sheet strength, which AM Best
assesses at the strongest level, 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 strongest
level of risk-adjusted capitalization, as measured by Best’s
Capital Adequacy Ratio (BCAR), low underwriting and investment
leverage ratios, excellent liquidity metrics, and organic and
steady surplus growth, supported by solid operating earnings.
TMIC’s adequate operating performance assessment stems from its
highly specialized niche business and its solid overall
profitability in recent years. During the most recent five years,
profitability levels were enhanced by the pandemic and
pandemic-related circumstances such as less miles driven and higher
residual values on used cars. During 2023 and continuing into 2024,
the company has experienced increasing claims, which have
approached more historical levels and as a result, profitability
has moderated accordingly.
TMIC’s neutral business profile benefits from its relationship
with its U.S. parent, Toyota Motor Credit Corporation (TMCC),
partially offset by its dependence on TMCC and the same factors
that may adversely impact the auto industry. The company’s
appropriate ERM framework incorporates traditional risk management
techniques specific to the auto industry, and TMIC benefits from
TMCC’s enterprise-wide risk management approach to capital
management, innovation and safety protocols.
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 pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
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
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
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Ricardo Longchallon Senior Financial Analyst +1 908 882
2019 ricardo.longchallon@ambest.com
Daniel Ryan Senior Director +1 908 882 2290
daniel.ryan@ambest.com
Christopher Sharkey Associate Director, Public Relations +1
908 882 2310 christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1 908 882
2318 al.slavin@ambest.com