AAA-The Auto Club Group Insurance Providers Receive Credit Rating Boost

AM Best upgrades credit ratings of Auto Club Insurance Association and Its subsidiaries


DENVER (February 18, 2021) — Known for providing its members with first-class roadside assistance, AAA – The Auto Club Group’s standing in the insurance industry continues to thrive.

AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a” from “a-” of Auto Club Insurance Association and its wholly owned subsidiaries:

  • Auto Club Group Insurance Company
  • MemberSelect Insurance Company
  • Auto Club Property-Casualty Insurance Company
  • Meemic Insurance Company and Fremont Insurance Company

The outlook of these Credit Ratings (ratings) has been revised to stable from positive.

Concurrently, AM Best has upgraded the FSR to A (Excellent) from A- (Excellent) and the Long-Term ICR to “a” from “a-” of The Members Insurance Company (TMIC) (Charlotte, NC). At the same time, AM Best has upgraded the FSR to A (Excellent) from B++ (Good) and the Long-Term ICR to “a” from “bbb” of Universal Insurance Company (NC) (UIC) (Winston-Salem, NC). The outlook of these ratings is stable. All companies are collectively referred to as Auto Club Group (ACG) and domiciled in Dearborn, MI, except where specified.

"This exciting news shows AAA's commitment to providing reliable insurance coverage for our members," said Joseph J. Richardson Jr., President and CEO, AAA - The Auto Club Group. "Our insureds can take comfort in knowing we are a financially strong and viable organization and we will continue our long history of protecting our members. AAA continues to simplify the way insurance is provided, so members can focus on the most important things in life, with the comfort of knowing that we have their back."

The ratings reflect ACG’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The rating upgrades reflect ACG’s improved operating performance, which resulted from implementing a number of initiatives designed to reduce underwriting volatility and improve rate adequacy. Underwriting performance has benefited from favorable loss reserve development and compares well with the composite and peer averages. ACG has maintained high policyholder retention levels despite strong competition due to its commitment to AAA members.

The very strong balance sheet assessment reflects ACG’s consolidated risk-adjusted capitalization, which is projected to remain at the strongest level over the near term, as measured by Best’s Capital Adequacy Ratio (BCAR). ACG’s business profile is neutral, as the group’s focused geographic concentration is mitigated partially by the proven ability to effectively operate within its territories by capitalizing on enhanced data analytics and pricing programs. Furthermore, the ERM program is appropriate for the risk profile of the organization.

The rating upgrades of TMIC and UIC reflect their additions to the group’s new intercompany reinsurance arrangement, and strategic importance to ACG. These companies write private passenger automobile and homeowners business in North Carolina and South Carolina.

In addition to being a financially strong organization, AAA – The Auto Club Group continues to provide support to local communities during these unprecedented times by providing free AAA roadside assistance services to healthcare workers and first responders, utilizing our roadside assistance vehicles and drivers to deliver meals and medical supplies to hospitals, donating technology supplies to schools so teachers and children could work and learn from home, and supporting local food pantries.

About AAA - The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America with more than 14 million members across 14 U.S. states, the province of Quebec and two U.S. territories. ACG and its affiliates provide members with roadside assistance, insurance products, banking and financial services, travel offerings and more. ACG belongs to the national AAA federation with more than 60 million members in the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety. For more information, get the AAA Mobile app, visit, and follow us on Facebook, Twitter and LinkedIn.

About AM Best
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