A.M. Best Upgrades Ratings of Toyota Motor Insurance Company
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
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
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.
A.M. Best Co.
Scott Mangan, 908-439-2200, ext. 5593
Peter Dickey, 908-439-2200, ext. 5053
Assistant Vice President
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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