Le Lézard
Classified in: Covid-19 virus
Subject: Bond/Stock Rating

AM Best Affirms Credit Ratings of The American Road Insurance Company


AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a" (Excellent) of The American Road Insurance Company (TARIC) (Dearborn, MI). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect TARIC'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.

TARIC is part of an insurance holding company system wholly owned by Ford Motor Credit Company LLC (Ford Credit), which in turn is an indirect, wholly owned subsidiary of Ford Motor Company (Ford) [NYSE: F].

Although TARIC holds a general business license, it operates much like a captive, providing a variety of coverages directly to Ford or Ford Credit, primarily collateral protection automobile floorplan, inland marine, contractual liability insurance for extended service contracts, direct commercial auto liability, direct general liability and surety bonds. In addition to these operational synergies, TARIC also benefits from the efficiencies gained by its immediate access to business and low acquisition costs.

The stable outlooks reflect AM Best's expectation that TARIC's rating fundamentals will remain unchanged over the intermediate term despite some expected business contraction from COVID-19. Risk-adjusted capitalization is expected to remain at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), due to the company's conservative capital management. While the outlooks also consider some of the more pronounced pandemic-related challenges, such as semiconductor supply shortages and a continued interruption of unit production throughout the remainder of the year and into early 2022, operating performance is projected to remain profitable. Additionally, innovation in all operational phases and the company's risk management are aligned with the business objectives of Ford, which will continue to benefit TARIC.

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.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


These press releases may also interest you

at 00:25
Shanghai Junshi Biosciences Co., Ltd ("Junshi Biosciences," HKEX: 1877; SSE: 688180), a leading innovation-driven biopharmaceutical company dedicated to the discovery, development, and commercialization of novel therapies, announced its financial...

28 mar 2024
The "Global Clinical In Vitro Diagnostic Medical Laboratory Services Market: Strategy & Trends with Volume & Price Forecasts by Chemistry, Hematology, Microbiology, Pathology, Covid-19, and Molecular Dx by Country. Updated with Impact of COVID-19"...

28 mar 2024
Discovery Silver Corp. ("Discovery" or the "Company") today announced financial results for the three and twelve months ended December 31, 2023 ("Q4 2023" and "2023", respectively). The Company also provided a summary of key events since the...

28 mar 2024
The "Molecular Diagnostics at the Point of Care. By Application, Technology, Place, Product and by Country. With Executive Guides and Customization 2023 - 2027 " report has been added to  ResearchAndMarkets.com's offering. Infectious disease Dx is...

28 mar 2024
The "Whole Genome and Exome Sequencing Markets by Application, Organism and Product with Executive and Consultant Guides. Includes Direct to Consumer Analysis. 2023 to 2027" report has been added to  ResearchAndMarkets.com's offering. Will all...

28 mar 2024
Boat Rocker Media Inc. ("Boat Rocker" or the "Company") , an independent, integrated global entertainment company, today reported its financial results for the three months ended December 31, 2023 ("fourth quarter" or "Q4") and for the year ended...



News published on and distributed by: