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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 01, 2022 10:14 AM (EST)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long Term ICR) of “a-” (Excellent) of Landcar Casualty Company (Landcar) (Sandy, UT).
The ratings reflect Landcar’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The outlook revisions to positive reflect the company’s improvement in underwriting and operating performance in recent years, driven by management’s corrective actions to improve its Guaranteed Asset Protection (GAP) line of business. Landcar’s operating performance is expected to remain favorable in the near term while managing its strategic initiatives to slowly expand its books of business into additional states and dealerships following its recent acquisition by Asbury Automotive Group, Inc. (Asbury) [NYSE: ABG]. Furthermore, AM Best expects that Landcar will maintain its balance sheet strength at the very strong level supported by its strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and sustain growth in policyholder surplus bolstered by retained earnings.
Landcar benefits from its niche business profile as a writer of auto-related insurance products through a network of affiliated automotive dealerships as a part of the Asbury group. AM Best will continue to monitor the company’s expansion as Landcar is exposed to execution risk with its growth strategy.
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