A.M. Best Assigns Credit Ratings to HiRoad Assurance Company
A.M. Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to HiRoad Assurance Company (HiRoad) (Bloomington, IL). The outlook assigned to these Credit Ratings (ratings) is stable. HiRoad is a direct subsidiary of State Farm Mutual Automobile Insurance Company (SFMAIC).
HiRoad is a newly formed domestic stock insurer that will offer automobile insurance, written on a direct basis, and provide the State Farm Group (SFMAIC and its affiliates) with more flexibility in marketing business to more mobile-centric consumers. Sales in Rhode Island are expected to begin in the latter part of 2017. Furthermore, the company is expected to benefit from the business profile of the State Farm Group. All HiRoad officers have extensive experience in the property/casualty insurance industry, and are also officers of SFMAIC.
Positive movement in HiRoad’s ratings and/or outlooks is not anticipated in the near term. Downward rating pressure could potentially occur on the outlooks and/or ratings if the company faces market conditions that lead to any considerable adverse deviation in either underwriting performance or risk-adjusted capitalization from initial expectations. Rating movement could also potentially occur if the company’s strategic importance to SFMAIC or the explicit support provided by SFMAIC were to diminish.