AM Best affirmed the financial strength rating of A- (Excellent) and the long-term credit rating of “a-” (Excellent) of
The ratings reflect the strength of MICL’s balance sheet, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate management of business risks.
MICL’s balance sheet is underpinned by the highest level of risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR), which is supported by prudent reservation practices and an investment portfolio low risk liquid. Looking forward, AM Best expects MICL’s risk-adjusted capitalization to remain at the highest level, benefiting from stable operating performance and a prudent capital management policy. The company’s moderate reliance on reinsurance and concentration with a single reinsurance counterparty are partially mitigated by the excellent credit quality of the reinsurer.
MICL has a track record of strong overall performance, generating a five-year (2017-2021) weighted average return on equity ratio of 10.1%. Earnings are supported by strong and stable underwriting results, demonstrated by a combined ratio that has fluctuated between 89% and 94% over the past five years.
MICL provides automobile warranty and supplementary automobile insurance policies, mainly distributed by retail intermediaries. The company has a well-established competitive position in the automotive warranty market in the
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Source: AM Best