A.M. Best Revises Outlook to Positive for Toyota Motor Insurance Company

  A.M. Best Revises Outlook to Positive for Toyota Motor Insurance Company

Business Wire

OLDWICK, N.J. -- June 07, 2012

A.M. Best Co. has revised the outlook to positive from stable and affirmed the
financial strength rating of A- (Excellent) and issuer credit rating of “a-”
of Toyota Motor Insurance Company (Cedar Rapids, IA).

The revised outlook reflects TMIC’s continued solid capitalization levels,
steady surplus appreciation and strong underwriting results. Moreover, TMIC’s
ultimate parent, Toyota Motor Corporation (Toyota), has shown a willingness to
support TMIC if necessary. TMIC plays a strategic role within the Toyota
organization by providing vehicle service and guaranteed auto protection
agreements sold through Toyota, Lexus and affiliated dealerships throughout
the United States.

Partially offsetting these positive rating factors are TMIC’s limited business
profile as a single parent captive and its reliance on sales at the parent
level for premium generation.

Factors that could lead to rating upgrades include continued strong
underwriting profitability resulting in continued surplus appreciation.
However, TMIC’s outlook could be revised if its operating performance or
risk-based capitalization deteriorates to levels below A.M. Best’s
expectations.

The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Key criteria utilized include: “Risk Management and the Rating
Process for Insurance Companies”; “Evaluating Non-Insurance Ultimate Parents”;
“Understanding BCAR for Property/Casualty Insurers”; “Catastrophe Analysis in
A.M. Best Ratings”; and “Alternative Risk Transfer (ART).” Best’s Credit
Rating Methodology can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world’s oldest and most
authoritative insurance rating and information source. For more information,
visit www.ambest.com.

       Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

Contact:

A.M. Best Company
Scott Mangan, 908-439-2200, ext. 5593
Financial Analyst
scott.mangan@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Peter Dickey, 908-439-2200, ext. 5053
Assistant Vice President
peter.dickey@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com