AM Best Affirms Credit Ratings for Members of Ally Insurance Group

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of "a-" (Excellent) for the members of 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). All companies are domiciled in Detroit, MI, except AIICL, which is domiciled in Bermuda. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Ally Insurance's balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect drag from the ultimate parent, Ally Financial Inc. [NYSE: ALLY], a bank holding company that is headquartered in Detroit, MI.

Ally Insurance continues to maintain balance sheet strength at the strongest level supported by its risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), modest underwriting leverage, prudent reserving and a conservative invested asset base. The group has generated capital through operating earnings, which is reflective of disciplined underwriting, and a steady stream of investment income and realized gains. Earnings remain adequate despite the economic challenges amid the COVID-19 pandemic, which contributed to somewhat depressed premium writings for the group's commercial products given lower dealer vehicle inventory levels.

Ally Insurance has a substantial and well-established presence as a specialized writer of vehicle service contracts and guaranteed asset protection products throughout the United States and Canada, and is also a leading provider of selected commercial insurance coverages, primarily auto physical damage for dealers' vehicle inventory, throughout the United States. As a result, the group maintains a concentration of underwriting risk in the auto industry. The group is taking steps to expand into other lines of business, including its recent issuing carrier relationship with homeowners insurance group, Hippo Insurance Services, to provide capacity of up to $500 million, with Ally Insurance planning to retain a small portion of the business, subject to certain terms and conditions.

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 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. For more information, visit www.ambest.com.

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