SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

TMCNet:  A.M. Best Assigns Ratings to Ally International Insurance Company Ltd.

[August 29, 2014]

A.M. Best Assigns Ratings to Ally International Insurance Company Ltd.

OLDWICK, N.J. --(Business Wire)--

A.M. Best has assigned a financial strength rating of B++ (Good) and an issuer credit rating of "bbb+" to Ally International Insurance Company Ltd. (Ally IICL), which is ultimately owned by Ally Financial, Inc. (Ally Financial). The outlook assigned to both ratings is stable. Ally IICL is domiciled in Hamilton, Bermuda.

The ratings of Ally IICL reflect its strong capital position and solid operating performance in recent years. Ally IICL is a licensed Bermuda Class 3A reinsurer and currently assumes via a quota share agreement 50% of Canadian-based vehicle service contract business from an affiliate, Motors Insurance Corporation (Canada Branch) (Motors CAB).

In addition, beginning Sept. 1, 2014, Ally IICL will also act as a surplus lines fronting company for auto physical damage policies, taking over for the existing surplus lines carrier (a non-affiliated company). This surplus lines business will then be reinsured via a 100% quota share agreement back to another affiliate, Motors Insurance Corporation (Motors), with all losses and expenses for operating this line to be absorbed by Motors. As a result, no underwritng or investment income will be recorded in Ally IICL associated with this business. Ally IICL has and will continue to play a very important strategic role to Ally Financial and its affiliated companies going forward, both as a reinsurer and fronting company.


Ally Financial is comprised of a leading automotive financial services business and direct banking franchise. Ally Financial's automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services.

Potential upward movement on Ally IICL's ratings over the near term is unlikely due to the current financial constraints at Ally Financial. In the medium term, possible upward rating movement could result from the continued reduction in U.S. Government ownership of Ally Financial. Possible downward movement on the ratings could result from a reduction in profitability due to a decline in U.S. auto sales, a corresponding decline in vehicle service contract revenues, and/or lower earnings at Ally Financial.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.


[ Back To Technology News's Homepage ]

OTHER NEWS PROVIDERS







Technology Marketing Corporation

800 Connecticut Ave, 1st Floor East, Norwalk, CT 06854 USA
Ph: 800-243-6002, 203-852-6800
Fx: 203-866-3326

General comments: tmc@tmcnet.com.
Comments about this site: webmaster@tmcnet.com.

STAY CURRENT YOUR WAY

© 2014 Technology Marketing Corporation. All rights reserved.