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FOR IMMEDIATE RELEASE
OLDWICK - MARCH 23, 2018 08:54 AM (EDT)
A.M. Best has assigned a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of “aa” to Motor Club Insurance Company (MCIC) (Providence, RI). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect MCIC’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.
The rating actions reflect the execution of a reinsurance quota share agreement with Interinsurance Exchange of the Automobile Club (the Exchange) under which, the Exchange will assume 100% of the business ceded by MCIC. MCIC is a property/casualty (P/C) insurer domiciled in Providence, RI. The Exchange is the lead company of the Auto Club Enterprises Insurance Group pooling agreement, which provides a range of personal P/C coverages throughout the United States.
MCIC is co-owned by AAA Northeast (ANE) and the Exchange. It will sell AAA-branded P/C insurance products within ANE’s territory. The joint venture will leverage ANE’s local market knowledge and the Exchange’s insurance expertise.
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 Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.