AM Best Assigns Credit Ratings to Auto Club MAPFRE Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Auto Club MAPFRE Insurance Company (ACMIC) (Columbus, OH). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect ACMIC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). ACMIC’s ratings also benefit from the support of its affiliates, MAPFRE U.S.A. Group.

The very strong balance sheet strength assessment reflects ACMIC’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), solid business plan, conservative loss reserving philosophy and financial flexibility through support from its majority owner, MAPFRE U.S.A. Corp. AM Best expects the company’s risk-adjusted capitalization to remain within the strongest category during the start-up phase. Additional positive balance sheet strength assessment factors include ACMIC’s low-risk conservative investment portfolio and comprehensive reinsurance program.

AM Best assesses ACMIC’s operating performance as adequate based on its projections and the fact that anticipated writings and associated historical loss ratios are well known to the company via its 100% quota share arrangement with Commerce Insurance Company (part of MAPFRE U.S.A. Group). AM Best views the company’s business profile as limited given its geographic and product concentration as a personal lines writer in Washington state and Idaho. Additionally, the limited profile reflects the company’s start-up nature, which creates execution risk. However, this risk is partially offset by ACMIC’s experienced management team due to its affiliation with MAPFRE U.S.A. Group. ACMIC’s ERM capabilities are anticipated to benefit from the overall framework developed and utilized by MAPFRE U.S.A. Group.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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