The acquisition of Chicago Motor Club Insurance Co., by the Auto Club Insurance Association, Dearborn, Mich., has no impact on A.M. Best Co.’s ratings of either company.
A.M. Best views the Jan. 31 cash transaction favorably for both organizations. Chicago Motor Club Insurance Co.’s overall financial flexibility and business capacity will be enhanced given Auto Club Insurance Association’s solid capitalization. The ratings of the companies’ are not affected due to the absence of a formal inter-company reinsurance agreement or other loss sharing arrangement.
“A” rated Auto Club Insurance Association writes most of its business in Michigan where in personal lines. The acquisition of “B+” rated Chicago Motor Club Insurance Co. will continue the company’s initiatives aimed at expanding its overall spread of risk with an entry into the Chicago, central Illinois and Indiana markets.
Auto Club Insurance Association is an affiliate of the Auto Club Group (previously listed by A.M. Best as Automobile Club of Michigan Group); Chicago Motor Club Insurance Co. is the former insurance operations branch of Chicago Motor Club. Both Chicago Motor Club Insurance Co. and the Auto Club Group are members of the nationally recognized American Automobile Association.
Topics Auto
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