A.M. Best Upgrades Ratings of Toyota Motor Insurance Company Business Wire OLDWICK, N.J. -- May 22, 2013 A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and the issuer credit rating to “a” from “a-” of Toyota Motor Insurance Company (TMIC) (Cedar Rapids, IA). The outlook for both ratings has been revised to stable from positive. The rating upgrades reflect TMIC’s excellent risk-adjusted capitalization and consistently strong operating results driven by underwriting income and complemented by a steady flow of investment income. These positive attributes are further supported by TMIC’s solid cash flow, liquidity and leverage metrics. Additionally, TMIC benefits from support provided by its ultimate parent, Toyota Motor Corporation (Toyota). TMIC plays a strategic role within the Toyota organization by providing vehicle service agreements, guaranteed auto protection agreements and excess wear and use coverage sold through Toyota, Lexus and affiliated dealerships throughout the United States. Somewhat offsetting these positive rating factors are TMIC’s limited business profile as a single parent captive as well as its reliance on sales at the parent level for premium generation. Positive rating actions could occur if TMIC continues to produce sustainable robust overall earnings while maintaining its strong level of risk-adjusted capitalization. Negative rating actions could occur if underwriting results deteriorate or there is a significant decline in surplus. A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive. 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. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology. 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 © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED. Contact: A.M. Best Co. Scott Mangan, 908-439-2200, ext. 5593 Financial Analyst firstname.lastname@example.org or Peter Dickey, 908-439-2200, ext. 5053 Assistant Vice President email@example.com or Rachelle Morrow, 908-439-2200, ext. 5378 Senior Manager, Public Relations firstname.lastname@example.org or Jim Peavy, 908-439-2200, ext. 5644 Assistant Vice President, Public Relations email@example.com
A.M. Best Upgrades Ratings of Toyota Motor Insurance Company
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