OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating (FSR) to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a-” from “bbb+” for The Members Insurance Company (TMIC) (Charlotte, NC). The outlook assigned to these Credit Ratings (ratings) is stable. Additionally, AM Best has removed from under review with positive implications and affirmed the FSR of B++ (Good) and the Long-Term ICR of “bbb” for Universal Insurance Company (UIC) (Winston-Salem, NC). The outlook assigned to these ratings is stable. These companies are wholly owned subsidiaries of Carolina Motor Club, Inc. (CMC).
The ratings of TMIC reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile, appropriate enterprise risk management (ERM) and the strength and support of its new ultimate parent, The Auto Club Group (ACG), a Michigan-domiciled AAA Club.
The ratings of UIC reflect its balance sheet strength, which AM Best categorizes as strong, as well as its marginal operating performance, limited business profile, appropriate ERM and the strength and support of ACG.
Effective Jan. 1, 2020, CMC and its subsidiaries became affiliated with one of the largest AAA Club organizations in the United States. The partial rating enhancement received by TMIC and Universal reflect the financial strength and support of their new parent. It also reflects the expected integration of several corporate functions such as the same practices and procedures, reinsurance, underwriting selection, investment management and ERM practices.
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