AM Best

A.M. Best Affirms Ratings of the Members of the Ally Insurance Group


Darian Ryan
Senior Financial Analyst
(908) 439-2200, ext. 5449

Michael Lagomarsino
Assistant Vice President
(908) 439-2200, ext. 5810
Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644


OLDWICK - MAY 22, 2015 01:01 PM (EDT)
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 .

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.

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