Best’s News & Research Service - April 16, 2025 11:18 AM (EDT)
AM Best Revises Outlooks to Stable for Members of Auto Club Florida Group; Affirms Credit Ratings of Auto Club Group’s Members
- April 16, 2025 11:18 AM (EDT)
//BestWire// - AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a-” (Excellent) of Auto Club Insurance Company of Florida (ACICF) and Auto Club South Insurance Company (ACSIC). Together these companies form Auto Club Florida Group (Auto Club Florida) and are domiciled in Tampa, FL.
Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) of Auto Club Insurance Association (ACIA) (Dearborn, MI) and its wholly owned subsidiaries and affiliates, which are collectively referred to as Auto Club Group (ACG). The outlook of these Credit Ratings (ratings) is negative. (See below for a detailed listing of ACG’s companies and ratings.)
The ratings of Auto Club Florida reflect its balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The revision in the outlooks to stable reflects the improvement in operating results over the last two years as the group focused on improving risk management and strengthened its underwriting criteria, leading to a return to underwriting profitability.
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. Despite significant improvement in 2024, the negative outlooks reflect ACG’s weakened operating results in prior years, driven by increased levels of underwriting losses due to both catastrophic weather events and increased loss severity. The group’s operating results rebounded in 2024 following implementation of strategic underwriting initiatives.
The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed, with negative outlooks, for the following members of ACG:
· 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
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.