OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of “aa” to Motor Club Insurance Company (MCIC) (Providence, RI). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect MCIC’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.
The rating actions reflect the execution of a reinsurance quota share agreement with Interinsurance Exchange of the Automobile Club (the Exchange) under which, the Exchange will assume 100% of the business ceded by MCIC. MCIC is a property/casualty (P/C) insurer domiciled in Providence, RI. The Exchange is the lead company of the Auto Club Enterprises Insurance Group pooling agreement, which provides a range of personal P/C coverages throughout the United States.
MCIC is co-owned by AAA Northeast (ANE) and the Exchange. It will sell AAA-branded P/C insurance products within ANE’s territory. The joint venture will leverage ANE’s local market knowledge and the Exchange’s insurance expertise.
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