AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a” (Excellent) for Motors Insurance Company Limited (MICL), with a stable outlook.
The ratings reflect MICL’s very strong balance sheet strength, strong operating performance, limited business profile and appropriate enterprise risk management. Risk-adjusted capitalisation remains at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). This position is supported by conservative reserving, a low-risk investment strategy and stable underwriting results.
MICL primarily writes motor-related insurance products, including extended warranties and add-on covers such as roadside assistance, key cover, and tyre and alloy protection. These products are distributed mainly through car dealerships and other retail intermediaries across the UK. The company has established a solid presence in the UK automotive warranty sector, contributing significantly to the AmTrust Group’s overall performance in niche insurance markets.
The insurer posted a five-year average return on equity of 10.6% between 2020 and 2024, driven by consistent underwriting profitability. Its average combined ratio over the same period was 91.2%, reflecting stable pricing discipline and cost control. Investment income remains modest due to a conservative asset allocation but continues to support earnings.
MICL’s operations are backed by the AmTrust Group, a US-headquartered multinational insurance holding company with operations in North America, the UK, Europe, and Asia. AmTrust focuses on niche insurance segments, including small commercial business, extended warranty, and specialty risk cover.
Looking ahead, AM Best expects MICL to maintain a stable market profile in the UK and to continue delivering underwriting results in line with historical trends. The company’s strategic alignment with AmTrust’s global operations provides additional support in terms of risk management, governance, and reinsurance capacity.
