FEBRUARY 19, 2021 09:34 AM (EST)
AM Best Assigns Preliminary Credit Assessment to ASMI Auto Group Members
Senior Financial Analyst
+1 908 439 2200, ext. 5063
Jacqalene Lentz, CPA
+1 908 439 2200, ext. 5762
Manager, Public Relations
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 19, 2021 09:34 AM (EST)
AM Best has assigned a Preliminary Credit Assessment (PCA) to ASMI Auto Insurance Company, ECMI Auto Insurance Company and ESMI Auto Insurance Company, with a Financial Strength Assessment of A- pca (Excellent) and a Long-Term Issuer Credit Assessment of “a-” pca. The outlook assigned to these PCAs is stable. These companies are collectively known as the ASMI Auto Group and are domiciled in Northbrook, IL.
The PCA reflects the ASMI Auto Group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, very limited business profile and appropriate enterprise risk management. The PCA also reflects the risk management and service agreement support of its ultimate parent, The Allstate Corporation (Allcorp). The PCA does not assume any further capital support from Allcorp or its affiliates to the ASMI Auto Group.
The PCA considers ASMI Auto Group’s projected risk-adjusted capitalization at the level of very strong, as well as its conservative investment allocation and adequate liquidity metrics, which anchor the overall balance sheet assessment. The very limited business profile is reflective of the run-off nature of the group, which was created to house certain inactive Michigan auto policies with active injury claims that represent the majority of Allcorp’s Michigan Catastrophic Claims Association (MCCA) recoverables. AM Best therefore anticipates that operating performance will be primarily driven by net investment income and will be consistently and modestly profitable. Risk management for the group is integrated with Allcorp under the corporate-wide enterprise risk management framework. The PCA considers the overall integration that ASMI Auto Group will benefit from through various administrative and servicing agreements that are expected to be maintained between the group and Allstate Insurance Company.
This press release relates to Preliminary Credit Assessments 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 assessments 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 and Assessment 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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.