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A.M. Best Affirms Rating of Toyota Motor Insurance Company CONTACTS:
FOR IMMEDIATE RELEASE OLDWICK, N.J., June 23, 2008—A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Toyota Motor Insurance Company (TMIC) (Cedar Rapids, IA). The outlook for both ratings is stable. The ratings reflect TMIC’s adequate capitalization and improved operating performance. TMIC’s parent, Toyota Motor Insurance Services, Inc., whose ultimate parent is Toyota Motor Corporation [NYSE: TM], has consistently provided financial support to TMIC in order for it to maintain its current rating level. TMIC plays a strategic role as a provider of vehicle service agreements (VSA) and guaranteed auto protection (GAP) plans to Toyota, Lexus and affiliated dealerships throughout the United States. Partially offsetting these positive rating factors are
TMIC’s fluctuating operating results and leverage measures over
a five-year period. To improve underwriting results, management instituted
rate increases in its VSA program in both 2001 and 2004. GAP rate increases
went into effect in 2005. Beginning in 2005, TMIC changed the payment method of its administrative expenses from up front to as incurred. This change has lowered overall expense ratios. A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world. For current Best’s Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. 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, visitwww.ambest.com. ### |
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