AM Best Affirms Credit Ratings of The American Road Insurance Company
November 02 2022 - 11:13AM
Business Wire
AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a”
(Excellent) of The American Road Insurance Company (TARIC)
(Dearborn, MI). The outlook of these Credit Ratings (ratings) is
stable.
The ratings reflect TARIC’s balance sheet strength, which AM
Best assesses as strongest, as well as its adequate operating
performance, neutral business profile and appropriate enterprise
risk management.
TARIC is part of an insurance holding company system wholly
owned by Ford Motor Credit Company LLC (Ford Credit), which in turn
is an indirect, wholly owned subsidiary of Ford Motor Company
(Ford) [NYSE: F].
TARIC provides products and services that support the sale and
financing of Ford and Ford vehicles in dealerships throughout the
United States and Canada with a variety of coverages. Principal
lines include collateral protection automobile floorplan, followed
by inland marine, contractual liability insurance policies for
extended service contracts, direct commercial auto liability,
direct general liability and surety bonds. Despite concentration in
Ford products and services in the auto industry, TARIC benefits
from enterprise-wide operational synergies and efficiencies gained
by immediate access to business and low acquisition costs, as well
as geographic diversification.
The stable outlooks reflect AM Best’s expectation that TARIC’s
rating fundamentals will remain unchanged over the intermediate
term. Risk-adjusted capitalization is expected to remain at the
strongest level, as measured by Best’s Capital Adequacy Ratio
(BCAR), due to the company’s conservative capital management. While
the outlooks also consider some of the more pronounced
pandemic-related challenges, such as semiconductor supply shortages
and a continued interruption of unit production throughout the
remainder of the year and into early 2023, operating performance is
projected to remain profitable. Additionally, innovation in all
operational phases and the company's risk management are aligned
with the business objectives of its ultimate parent, Ford, which
will continue to benefit TARIC.
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.
Copyright © 2022 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Vicky Riggs Associate Director +1 908 439 2200,
ext. 5039 vicky.riggs@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Daniel Ryan Senior Director +1 908 439 2200,
ext. 5325 daniel.ryan@ambest.com
Al Slavin Communications Specialist +1 908 439
2200, ext. 5098 al.slavin@ambest.com
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