A.M. Best Affirms Ratings of the Members of the Ally Insurance Group
May 22 2015 - 01:34PM
Business Wire
A.M. Best has affirmed the financial strength rating of
B++ (Good) and the issuer credit ratings (ICR) of “bbb+” of the
members of the Ally Insurance Group (Ally Insurance).
The members include Motors Insurance Corporation and its
reinsured subsidiaries, MIC Property and Casualty Insurance
Corporation and CIM Insurance Corporation, as well as an
affiliate, Ally International Insurance Company, Ltd.
(AIICL). The outlook for all ratings is stable. All companies are
domiciled in Southfield, MI, except AIICL, which is domiciled in
Bermuda.
The ratings reflect Ally Insurance’s strong risk-adjusted
capitalization, historically solid operating results and
well-established market presence as a specialized underwriter of
motor vehicle service contracts (VSC). Ally Insurance’s positive
rating factors are somewhat constrained by the credit profile of
its ultimate parent, Ally Financial Inc. (Ally Financial),
albeit improving, and to a lesser extent a deterioration in its
underwriting performance given an increase in weather-related
losses and higher than average expense structure.
Ally’s positive rating attributes are derived from management’s
focused operating strategy, extensive product knowledge and
established track record of solid earnings generated from its
long-term VSC business. The group has consistently generated
capital through operating earnings reflective of disciplined
underwriting and a steady stream of investment income and realized
gains. The group also benefits from its parent’s commitment to
maintain its risk-adjusted capital at a level consistent with its
rating.
A.M. Best believes Ally’s ratings and outlook are
well-positioned at their current rating levels. Factors that may
lead to positive rating actions include improved underwriting
performance that outperforms peers over time and continued
improvement in Ally Financial’s published credit ratings. Factors
that could lead to negative rating actions include operating
performance falling short of A.M. Best’s expectations, an erosion
of surplus that causes a decline in risk-adjusted capital to a
level no longer supporting current ratings or a deterioration in
Ally Financial’s credit profile, including any negative rating
actions on its published credit ratings.
The methodology used in determining these ratings is Best’s
Credit Rating Methodology, which provides a comprehensive
explanation of A.M. Best’s rating process and contains the
different rating criteria employed in the rating process. Best’s
Credit Rating Methodology can be found at
www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Catastrophe Analysis in A.M. Best
Ratings
- Evaluating Non-Insurance Ultimate
Parents
- Rating Members of Insurance Groups
- Risk Management and the Rating Process
for Insurance Companies
- Understanding BCAR for
Property/Casualty Insurers
- Understanding Universal BCAR
This press release relates to rating(s) that have been
published on A.M. 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 visit A.M.
Best’s Ratings & Criteria Center.
A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2015 by A.M. Best Company,
Inc. ALL RIGHTS RESERVED.
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A.M. Best CompanyDarian RyanSenior Financial
Analyst908-439-2200, ext.
5449darian.ryan@ambest.comorMichael
LagomarsinoAssistant Vice President908-439-2200, ext.
5810michael.lagomarsino@ambest.comorChristopher
SharkeyManager, Public Relations908-439-2200, ext.
5159christopher.sharkey@ambest.comorJim
PeavyAssistant Vice President, Public
Relations908-439-2200, ext.
5644james.peavy@ambest.com