Best's News


Best’s News & Research Service - June 15, 2016 10:46 AM (EDT)

A.M. Best Affirms Ratings of the Members of the Ally Insurance Group

  • June 15, 2016 10:46 AM (EDT)
    print icon

Oldwick //BestWire// - A.M. Best has affirmed the financial strength rating of B++ (Good) and the issuer credit ratings of “bbb+” of the members of the Ally Insurance Group (Ally Insurance). The members include Motors Insurance Corporation and its reinsured subsidiaries, MIC Property and Casualty Insurance Corporation and CIM Insurance Corporation, as well as an affiliate, Ally International Insurance Company, Ltd. (AIICL). The outlook for each rating is stable. All companies are domiciled in Detroit, MI, except AIICL, which is domiciled in Bermuda.

The ratings reflect Ally Insurance’s strong risk-adjusted capitalization, sustained operating profitability and well-established market presence as a specialized underwriter of vehicle service contracts (VSC). Ally Insurance’s positive rating factors are somewhat constrained by the credit profile of its ultimate parent, Ally Financial Inc. (Ally Financial), albeit improving, and to a lesser extent by its ongoing expansion outside of GM-related business and its transition to an independent finance and insurance provider. The ratings also consider the group’s historically poor underwriting performance given its susceptibility to weather-related losses and a higher-than-average expense structure.

Ally Insurance’s positive rating attributes are derived from management’s focused operating strategy, extensive product knowledge and established track record of solid earnings generated from its long-term VSC business. The group has consistently generated capital through operating earnings reflective of disciplined underwriting and a steady stream of investment income and realized gains. The group also benefits from its parent’s commitment to maintain its risk-adjusted capital at a level consistent with its ratings.

A.M. Best believes Ally Insurance’s ratings and outlooks are well-positioned at their current rating levels. Factors that may lead to positive rating actions include improved underwriting performance that benefits from reduced catastrophe losses and outperforms peers overtime, and continued improvement in Ally Financial’s credit profile. However, factors that could lead to negative rating actions include a significant increase in catastrophe losses, a decline in risk-adjusted capital no longer supportive of the current ratings or deterioration in Ally Financial’s credit profile.

This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source.



Property And Liability Insurers United States Financial Strength Press Release Insurance Michigan Bermuda Caribbean Issuer Credit Rating Best's Credit Rating Action


Latest News

More from Best’s News


Trending

AM Best TV

More Related Company News

To Submit News go to - https://www.ambest.com/bestweek/submitnews.html