OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) of Landcar Casualty Company (Landcar) (Draper, UT). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect Landcar’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
Landcar maintains its balance sheet strength at the very strong level supported by its strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and its solid balance sheet liquidity.
Underwriting and overall operating performance has improved in recent years, while Landcar continued to execute its strategic initiatives to expand its operations into additional states and dealerships. This was subsequent to its acquisition by Asbury Automotive Group, Inc. (Asbury). Landcar’s operating performance is expected to remain favorable in the near term with further growth being accretive to earnings. AM Best will continue to monitor Landcar’s results as its expansion efforts continue, driven by Asbury’s acquisition strategies.
Landcar benefits from its niche business profile as a writer of auto-related insurance products through a network of affiliated automotive dealerships as a part of the Asbury group. Landcar’s expansion has diversified its geographic footprint and enhanced its growth opportunities.
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