Best’s News & Research Service - February 18, 2022 10:50 AM (EST)
AM Best Upgrades Credit Ratings of Auto Club Ins Co of Florida; Affirms Credit Ratings of Auto Club Ins Association and Subs
- February 18, 2022 10:50 AM (EST)
Oldwick //BestWire// - AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) of Auto Club Insurance Company of Florida (ACICF). Additionally, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Auto Club South Insurance Company (ACSIC). Together these companies form Auto Club Florida Group (Auto Club Florida) and are domiciled in Tampa FL. The outlook of these Credit Ratings is stable. Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Auto Club Insurance Association (ACIA) (Dearborn, MI) and its wholly owned subsidiaries, which are collectively referred to as Auto Club Group (ACG). The outlook of these ratings is stable.
The ratings of Auto Club Florida reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The ratings of Auto Club Florida also consider AM Best’s assessment of the financial support afforded by its ownership group (ACIA, 91.7% ownership and ACG, 8.3% ownership). Both ACIA and ACG have pledged to support ongoing growth and operations as needed. As in the past, capital will be called into the group at ownership’s discretion based on the guidance outlined in the predetermined capital risk tolerance framework.
The ratings of ACG reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM.
The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed for the following wholly owned subsidiaries of Auto Club Insurance Association:
- MemberSelect Insurance Company
- Auto Club Property-Casualty Insurance Company
- Auto Club Group Insurance Company
- Meemic Insurance Company
- Fremont Insurance Company
- The Members Insurance Company
- Universal Insurance Company (NC)
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.