OLDWICK, N.J., December 20, 2021–(BUSINESS WIRE)–Third paragraph, first sentence of the release should read: The rating affirmations follow the close of the transaction, effective December 17, 2021, where Asbury has acquired Landcar as part of an acquisition that also includes the Larry H. Miller dealerships for approximately $3.2 billion (instead of …approximately $3.3 billion).
The updated release reads:
AM BEST AFFIRMS CREDIT RATINGS OF LANDCAR CASUALTY COMPANY
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Landcar Casualty Company (Landcar) (Sandy, UT), recently acquired by Asbury Automotive Group, Inc. (Asbury) [NYSE: ABG]. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Landcar’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The rating affirmations follow the close of the transaction, effective December 17, 2021, where Asbury has acquired Landcar as part of an acquisition that also includes the Larry H. Miller dealerships for approximately $3.2 billion. Asbury is a publicly traded Fortune 500 automotive retailer that is considered the fourth-largest automotive retailer in the United States. Immediate holding company, Asbury Automotive Group, LLC, will own 100% ownership of Landcar.
Landcar’s ratings are supported by its strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and solid underwriting performance, as well as benefits derived from its niche profile as a writer of auto-related insurance products sold through a network of affiliated automotive dealerships under the Asbury group. Landcar’s neutral business profile, while experiencing some execution risk associated with expansion into additional states, is expected to support the Asbury’s organization by vertically integrating its finance and insurance products within the group. AM Best considers Landcar’s ERM to be appropriate, with policies and procedures in place for the business written. AM Best will monitor the expansion and the new parent’s use of the operating entity, as Landcar is expected to support its growth by focusing on staffing needs and integration opportunities within Asbury.
The stable outlooks reflect AM Best’s expectation that Landcar will maintain its balance sheet strength at the very strong level and its operating performance at the adequate level, while managing its strategic initiatives to expand its book of business as a result of the Asbury acquisition.
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, Best’s Preliminary Credit Assessments 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. For more information, visit www.ambest.com.
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