Insurance company

AM Best Confirms American Road Insurance Company Credit Ratings

OLDWICK, NJ–(BUSINESS WIRE)–AM Best affirmed The American Road Insurance Company (TARIC) (Dearborn, MI) financial strength rating of A (Excellent) and issuer long-term 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 assesses as the strongest, as well as its adequate operational performance, its neutral business profile and its appropriate management of business risks.

TARIC is part of an insurance holding company system wholly 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].

TARIC provides products and services that support the sale and financing of Ford and Ford vehicles at dealerships across the United States and Canada with a variety of coverages. Major lines include collateral protection automotive floor plan, inland marine tracking, contract liability insurance policies for extended service contracts, direct commercial auto liability, direct general liability and surety bonds. Despite the concentration of Ford products and services in the automotive industry, TARIC benefits from company-wide operational synergies and efficiencies gained through immediate access to operations and low acquisition costs, as well as to geographic diversification.

The stable outlook reflects AM Best’s expectation that the fundamentals of the TARIC rating will remain unchanged over the medium term. Risk-adjusted capitalization is expected to remain at the highest level, as measured by Best’s capital adequacy ratio (BCAR), due to the company’s conservative capital management. While the outlook also takes into account some of the more pronounced pandemic-related challenges, such as semiconductor supply shortages and a continued disruption to unit production through the remainder of the year and into early from 2023, operating performance should remain profitable. Additionally, innovation in all operational phases and business risk management are aligned with the business objectives of its ultimate parent company, Ford, which will continue to benefit TARIC.

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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit AM Best’s Recent Rating Activity webpage. For more information on the use and limitations of credit rating opinions, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best’s Credit Scores, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see the Guide to Proper Use of Best’s Best ratings and reviews.

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 more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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