| Copyright: | Business Wire | | Source: | Business Wire | | Wordcount: | 356 |
Business Editors/Insurance Writers
OLDWICK, N.J.--(BUSINESS WIRE)--May 13, 2008--A.M. Best Co. has affirmed the financial strength rating of B++ (Good) and issuer credit rating of “bbb” of DaimlerChrysler Insurance Company (DCIC)(Farmington Hills, MI). The outlook for both ratings is stable.
DCIC’s capitalization and operating performance has been and continues to be robust. However, DCIC’s current ratings are constrained by the operating challenges of its parent company, DaimlerChrysler Financial Services Americas LLC (Chrysler LLC).
The ratings reflect DCIC’s solid capitalization and its affiliation with Chrysler LLC, one of the world’s leading automotive corporations. The ratings further acknowledge DCIC’s favorable, although somewhat variable, operating results that are derived from its underwriting expertise, loss prevention measures and effective low cost distribution systems.
These rating strengths are partially offset by the group’s limited product offering, which is subject to volatility in underwriting results due to weather-related events. While underwriting results may continue to be impacted due to storm-related losses, management has increased its catastrophe loss limits, which it believes will protect overall surplus levels. Although surplus has fluctuated over a five-year period (largely owing to stockholder dividends), management is committed to maintaining excellent capitalization levels.
DCIC benefits from its parent’s well diversified auto dealer network that provides it with a highly efficient and effective distribution system, strong operating synergies, market opportunities and strategic value. The company’s sustainable competitive market position is further enhanced by its high business retention, extensive geographic spread of risk and solid product knowledge within its specialty niche market. The ratings also recognize management’s ongoing initiatives to maintain its above average underwriting results.
For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
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