A.M. Best Affirms Rating of Toyota Motor Insurance Company.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of Toyota Motor Insurance Company (TMIC TMIC Trend Micro Inc. (stock symbol) TMIC Top Mount Intercooler (automotive turbo systems) TMIC Traffic Management and Information Centre TMIC Training Management Information Center ) (Cedar Rapids Cedar Rapids, city (1990 pop. 108,751), seat of Linn co., E central Iowa, on the Cedar River; inc. as a city 1856. The second largest city in Iowa, it is named for the surging rapids in the river. , IA). The outlook for both ratings is stable. The ratings reflect TMIC's adequate capitalization and improved operating performance. TMIC's parent, Toyota Motor Insurance Services, Inc., whose ultimate parent is Toyota Motor Corporation [NYSE NYSE See: New York Stock Exchange : TM], has consistently provided financial support to TMIC in order for it to maintain its current rating level. TMIC plays a strategic role as the insurer of vehicle service agreements (VSA VSA (in New Zealand) Voluntary Service Abroad ) and guaranteed auto protection (GAP) plans sold through Toyota, Lexus and affiliated dealerships throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Partially offsetting these positive rating factors are TMIC's fluctuating operating results and leverage measures over a five-year period. To improve underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. results, management instituted rate increases in its VSA program in both 2001 and 2004. GAP rate increases went into effect in 2005. As TMIC's re-priced policies continue to earn out, results have improved. Beginning in 2005, TMIC changed the payment method of its administrative expenses from up front to as incurred. This change has lowered overall expense ratios. A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world. For current Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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