AM Best Affirms Credit Ratings of Toyota Motor Insurance Company

SEPTEMBER 04, 2026 12:21 PM (EDT)

AM Best Affirms Credit Ratings of Toyota Motor Insurance Company

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FOR IMMEDIATE RELEASE

OLDWICK - SEPTEMBER 04, 2026 12:21 PM (EDT)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a" (Excellent) of Toyota Motor Insurance Company (TMIC) (Chandler, AZ). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect TMIC's balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

TMIC's balance sheet strength is supported by its strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), low underwriting and investment leverage, excellent liquidity metrics and steady organic surplus growth. TMIC's adequate operating performance assessment reflects its highly specialized niche business and solid overall profitability. Results in earlier years benefited from pandemic-related conditions, including reduced miles driven and higher residual values on used cars. However, the company has reported underwriting losses in recent years, driven by unfavorable performance in its guaranteed asset protection and vehicle service agreement business segments. Underwriting losses have been offset by higher levels of net investment income, which has supported overall earnings.

TMIC's neutral business profile benefits from its relationship with its U.S. parent, Toyota Motor Credit Corporation (TMCC), which is partially offset by its dependence on TMCC and continuing headwinds that may adversely impact the auto industry, including persistent parts and labor inflation and changes in car valuations. TMIC's appropriate ERM framework incorporates traditional risk management techniques specific to the auto industry, and the company benefits from TMCC's enterprise-wide risk management approach to capital management, innovation and safety protocols.

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 pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings (BCR), Best's Performance Assessments (PA), Best's Preliminary Credit Assessments (PCA) and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

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 over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.