SEPTEMBER 01, 2021 02:55 PM (EDT)
AM Best Assigns Credit Ratings to ASMI Auto Group Members
|Kathryn Steffanelli |
Senior Financial Analyst
+1 908 439 2200, ext. 5063
Jacqalene Lentz, CPA
+1 908 439 2200, ext. 5762
Manager, Public Relations
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 01, 2021 02:55 PM (EDT)
AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to ASMI Auto Insurance Company, ECMI Auto Insurance Company and ESMI Auto Insurance Company. The outlook assigned to these Credit Ratings (ratings) is stable. The above mentioned companies are collectively known as the ASMI Auto Group and are domiciled in Northbrook, IL.
The ratings reflect ASMI Auto Group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, very limited business profile and appropriate enterprise risk management (ERM). The ratings also reflect the risk management and service agreement support of its ultimate parent, The Allstate Corporation (Allcorp). The ratings do not assume any further capital support from Allcorp or its affiliates to the ASMI Auto Group.
As of June 30, 2021, ASMI Auto Group’s risk-adjusted capitalization remains at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR). The group’s conservative investment allocation and adequate liquidity metrics further support the overall balance sheet assessment. The very limited business profile of ASMI Auto Group is reflective of its run-off nature, as it was created to house certain inactive Michigan auto policies with active injury claims that represent the majority of Allcorp’s Michigan Catastrophic Claims Association (MCCA) recoverables. AM Best therefore anticipates that operating performance will be primarily driven by net investment income and will be consistently and modestly profitable.
Risk management for the group is integrated with Allcorp under the corporate-wide ERM framework. The ratings also consider the overall integration that ASMI Auto Group benefits from through various administrative and servicing agreements that are expected to be maintained between the group and Allstate Insurance Company.
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 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.