AP NEWS

A.M. Best Revises Issuer Credit Rating Outlook to Stable for Toyota Motor Insurance Company

September 7, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Sep 7, 2018--A.M. Best has revised the outlook to stable from positive for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of “a” of Toyota Motor Insurance Company (TMIC) (Cedar Rapids, IA). The outlook of the FSR remains stable.

The ratings reflect TMIC’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

TMIC continues to maintain robust risk-adjusted capital, with growth driven by underwriting and investment results. Underwriting performance has declined in recent years as a result of its guaranteed auto protection (GAP) business, which management has addressed through rate increases. TMIC plays a strategic role within the Toyota organization by providing vehicle service agreements, guaranteed auto protection agreements, excess wear and use coverage and tire and wheel protection sold through Toyota, Lexus and affiliated dealerships throughout the United States. It is susceptible to general economic conditions and the economy’s impact on automobile purchases, along with vehicle financing standards.

The stable outlooks reflect the expectation for stable-to-improving underwriting performance following TMIC management’s pricing actions taken to address the unfavorable loss development related to its GAP business, which is expected to be realized in the next 12-18 months.

A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit .

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180907005305/en/

CONTACT: A.M. Best

Susan Molineux, +1 908 439 2200, ext. 5829

Associate Director

susan.molineux@ambest.com

or

Daniel J. Ryan, +1 908 439 2200, ext. 5325

Senior Director

daniel.ryan@ambest.com

or

Christopher Sharkey, +1 908 439 2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

or

Jim Peavy, +1 908 439 2200, ext. 5644

Director, Public Relations

james.peavy@ambest.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE

SOURCE: A.M. Best

Copyright Business Wire 2018.

PUB: 09/07/2018 10:53 AM/DISC: 09/07/2018 10:52 AM

http://www.businesswire.com/news/home/20180907005305/en

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