AM Best affirms American Road Insurance Company credit ratings

OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best confirmed the American Road Insurance Company (TARIC) (Dearborn, MI) long-term issuer credit rating of “A” (excellent). The outlook for these credit ratings (ratings) is stable.

The ratings reflect the strength of TARIC’s balance sheet, which AM Best considers to be the strongest, as well as its adequate operational performance, neutral business profile and appropriate management of corporate risks.

TARIC is part of an insurance holding company system 100% 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 functions much like a captive, offering a variety of coverages directly to Ford or Ford Credit, mainly collateral protection automobile floor plan, inland navigation, contractual liability insurance for extended service contracts, direct commercial automobile liability, general liability and bonding. In addition to these operational synergies, TARIC also benefits from efficiency gains thanks to its immediate access to business and its low acquisition costs.

The stable outlook reflects AM Best’s expectations that the fundamentals of TARIC’s rating will remain unchanged over the medium term despite some expected business contraction from COVID-19. The risk-adjusted capitalization is expected to remain at the highest level, as measured by Best’s capital adequacy ratio (BCAR), due to the prudent management of the company’s capital. While the outlook also takes into account some of the most pronounced challenges associated with the pandemic, such as semiconductor supply shortages and continued disruption of unit production throughout the remainder of the year and through to the start. from 2022, operational performance should remain profitable. In addition, innovation in all operational phases and business risk management are aligned with Ford’s business objectives, which will continue to benefit TARIC.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this publication, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best Credit Ratings, Best Preliminary Credit Ratings, and AM Best press releases, please see the Guide to Appropriate Use of Best Ratings and Ratings.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.

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Justin D. O'Neill

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