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Press release content from BusinessWire. The AP news staff was not involved in its creation.

AM Best Upgrades Credit Ratings of Auto Club Insurance Company of Florida

January 31, 2019

OLDWICK, N.J.--(BUSINESS WIRE)--Jan 31, 2019--AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” from “bbb+” of Auto Club Insurance Company of Florida (ACICF) (Tampa, FL). The outlook of these Credit Ratings (ratings) remains stable.

The ratings reflect ACICF’s balance sheet strength, which AM Best categorizes as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

The rating upgrades reflect the company’s improving balance sheet strength on a catastrophe stress-tested basis as demonstrated by solid surplus growth in most of the past five years. Following a modest loss of surplus in 2017, driven primarily by Hurricane Irma losses, ACICF’s surplus rebounded in 2018. The company’s balance sheet remains strong with sound liquidity measures, favorable underwriting leverage ratios and historically redundant reserve development. The ratings also recognize the implicit commitment provided by its ultimate parent, Auto Club Insurance Association (Dearborn, MI), for which ACICF receives rating enhancement.

ACICF’s operating performance is strong as reflected by its five-year average pre-tax and total returns on revenue and equity that compare favorably with the composite. In addition, the company’s five-year average combined and operating ratios outperform the composite. As a single state writer in Florida, the company is exposed to hurricane events, as well as judicial, economic and regulatory concerns. As a result, its business profile is deemed limited. However, the company adheres to a formalized comprehensive ERM program that identifies major risks to the organization while correlating mitigation strategies to offset these risks. In addition, the company maintains adequate reinsurance coverage to insulate policyholder surplus from significant weather events.

This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view .

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

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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CONTACT: Michael T. Venezia

Senior Financial Analyst

+1 908 439 2200, ext. 5034

michael.venezia@ambest.comJacqalene Lentz, CPA


+1 908 439 2200, ext. 5762

jacqalene.lentz@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comJim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644





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PUB: 01/31/2019 12:37 PM/DISC: 01/31/2019 12:37 PM