A.M. Best has affirmed the financial strength rating “A (Excellent)” and the issuer credit rating “a” of The American Road Insurance Company (TARIC), located in Dearborn, Michigan.
TARIC is a single parent, or pure captive insurer, wholly owned by Ford Motor Credit Company (Ford Credit), which is an indirect wholly owned subsidiary of Ford Motor Company (Ford).
According to A.M. Best, the ratings of TARIC reflect its “excellent” capitalisation and “positive” operating performance.
TARIC’s enterprise risk management programme, which is carried out at its ultimate parent, “has proven effective at mitigating weather-related losses, resulting in strong underwriting performance over the most recent five-year period”, A.M. Best said.
TARIC provides multiple coverages to Ford and its subsidiaries in the US and Canada, mainly automobile floor plan collateral protection, inland marine, extended service business and commercial auto liability.
A.M. Best suggested that while the current ratings and outlooks are not expected to change in the near term, deterioration in operating performance could lead to a decrease in the company’s ratings and outlook.
