AM Best Assigns Credit Ratings to Auto Club MAPFRE Insurance Company
August 02 2024 - 3:23PM
Business Wire
AM Best has assigned a Financial Strength Rating of A-
(Excellent) and a Long-Term Issuer Credit Rating of “a-”
(Excellent) to Auto Club MAPFRE Insurance Company (ACMIC)
(Columbus, OH). The outlook assigned to these Credit Ratings
(ratings) is stable.
The ratings reflect ACMIC’s balance sheet strength, which AM
Best assesses as very strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise
risk management (ERM). ACMIC’s ratings also benefit from the
support of its affiliates, MAPFRE U.S.A. Group.
The very strong balance sheet strength assessment reflects
ACMIC’s strongest level of risk-adjusted capitalization, as
measured by Best’s Capital Adequacy Ratio (BCAR), solid business
plan, conservative loss reserving philosophy and financial
flexibility through support from its majority owner, MAPFRE U.S.A.
Corp. AM Best expects the company’s risk-adjusted capitalization to
remain within the strongest category during the start-up phase.
Additional positive balance sheet strength assessment factors
include ACMIC’s low-risk conservative investment portfolio and
comprehensive reinsurance program.
AM Best assesses ACMIC’s operating performance as adequate based
on its projections and the fact that anticipated writings and
associated historical loss ratios are well known to the company via
its 100% quota share arrangement with Commerce Insurance Company
(part of MAPFRE U.S.A. Group). AM Best views the company’s business
profile as limited given its geographic and product concentration
as a personal lines writer in Washington state and Idaho.
Additionally, the limited profile reflects the company’s start-up
nature, which creates execution risk. However, this risk is
partially offset by ACMIC’s experienced management team due to its
affiliation with MAPFRE U.S.A. Group. ACMIC’s ERM capabilities are
anticipated to benefit from the overall framework developed and
utilized by MAPFRE U.S.A. Group.
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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Brian O’Larte Director +1 908 882 2212
brian.o'larte@ambest.com Richard Attanasio Senior
Director +1 908 882 1638 richard.attanasio@ambest.com
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Relations +1 908 882 2310 christopher.sharkey@ambest.com
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908 882 2318 al.slavin@ambest.com