OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of The American Road Insurance Company (TARIC) (Dearborn, MI). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect TARIC’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
TARIC is part of an insurance holding company system wholly owned by Ford Motor Credit Company LLC (Ford Credit), which in turn is an indirect, wholly owned subsidiary of Ford Motor Company (Ford) [NYSE: F].
Although TARIC holds a general business license, it operates much like a captive, providing a variety of coverages directly to Ford or Ford Credit, primarily automobile wholesale, collateral protection, inland marine, extended service business and commercial auto liability. Ford’s strong brand recognition as one of the leading automobile providers in the United States and Canada benefits TARIC.
The stable outlooks reflect AM Best's expectation that TARIC's rating fundamentals will remain unchanged over the intermediate term. AM Best also expects risk-adjusted capitalization to remain at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), due to the company's conservative capital management. Operating performance is expected to remain at the adequate level, supported by prudent underwriting and investment returns.
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