Best’s News & Research Service - February 12, 2020 10:01 AM (EST)
AM Best Removes From Under Review and Upgrades Credit Ratings of The Members Insurance Co, Affirms Ratings for Universal Ins Co
- February 12, 2020 10:01 AM (EST)
Oldwick //BestWire// - AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating (FSR) to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a-” from “bbb+” for The Members Insurance Company (TMIC) (Charlotte, NC). The outlook assigned to these Credit Ratings (ratings) is stable. Additionally, AM Best has removed from under review with positive implications and affirmed the FSR of B++ (Good) and the Long-Term ICR of “bbb” for Universal Insurance Company (UIC) (Winston-Salem, NC). The outlook assigned to these ratings is stable. These companies are wholly owned subsidiaries of Carolina Motor Club, Inc. (CMC).
The ratings of TMIC reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile, appropriate enterprise risk management (ERM) and the strength and support of its new ultimate parent, The Auto Club Group (ACG), a Michigan-domiciled AAA Club.
The ratings of UIC reflect its balance sheet strength, which AM Best categorizes as strong, as well as its marginal operating performance, limited business profile, appropriate ERM and the strength and support of ACG.
Effective Jan. 1, 2020, CMC and its subsidiaries became affiliated with one of the largest AAA Club organizations in the United States. The partial rating enhancement received by TMIC and Universal reflect the financial strength and support of their new parent. It also reflects the expected integration of several corporate functions such as the same practices and procedures, reinsurance, underwriting selection, investment management and ERM practices.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.