Toyota captive earns upgrade
The Iowa-domiciled captive of Toyota Motor Corporation received an upgrade in its financial strength and issuer credit ratings from A.M. Best. According to the rating agency, the upgrade reflects the captive’s strong operating results and excellent risk-adjusted capitalization. Solid cash flow, liquidity and leverage metrics, in addition to strong support from the parent company.
Slightly offsetting these positive ratings factors are the captive’s limited business profile as a single parent captive, as well as its reliance on sale at the parent level for premium generation.
The Toyota Motor Insurance Company provides its parent with vehicle service agreements, guaranteed auto protection agreements and excess wear and use coverage sold through Toyota, Lexus and affiliated dealerships throughout the United States.