AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) for the members of Ally Insurance Group (Ally Insurance). The members include Motors Insurance Corporation and its reinsured subsidiaries, MIC Property and Casualty Insurance Corporation and CIM Insurance Corporation, as well as an affiliate, Ally International Insurance Company Ltd. (AIICL). All companies are domiciled in Detroit, MI, except AIICL, which is domiciled in Bermuda. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Ally Insurance’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect drag from the ultimate parent, Ally Financial Inc. [NYSE: ALLY], a bank holding company headquartered in Detroit, MI.

Ally Insurance continues to maintain its balance sheet strength at the strongest level, supported by its risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), modest underwriting leverage, despite considerable premium cessions to producer-owned reinsurance companies, prudent reserving and a conservative investment asset base. The group’s history of large dividend payments to its parent, after exceeding capital targets, has led to fluctuating surplus growth. However, the group’s quality of capital remains high, reflective of its ability to generate surplus organically through disciplined underwriting and a steady stream of investment income. Earnings remain adequate despite the macroeconomic challenges and supply chain shortages, which contributed to somewhat depressed premium writings for the group’s commercial products amid lower dealer vehicle inventory levels, similar to the group’s peers.

Ally Insurance has a well-established presence as a specialized writer of vehicle service contracts (VSCs) and guaranteed asset protection (GAP) products throughout the United States and Canada, and is also a leading provider of selected commercial insurance coverages, primarily auto physical damage for dealers’ vehicle inventory, throughout the United States. As a result, the group maintains a concentration of underwriting risk in the auto industry. The group has taken steps in recent years to expand into other lines of business and product services, and benefits from strategic alliances in non-auto markets and its leading innovative processes together with its ultimate parent. Given the current economic and inflationary headwinds facing the auto, credit and banking industry, AM Best considers the lower ratings of its ultimate parent, Ally Financial Inc., which continue to adversely impact the ratings of the members of Ally Insurance Group.

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 Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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

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