These positive rating factors are derived from OUC’s favorable pre-tax operating returns over the past five years, conservative balance sheet, and the synergies gained from being affiliated with Van Enterprises, Inc. OUC specializes in providing vehicle service contracts to affiliated automobile dealerships that are owned by its ultimate parent, Van Enterprises, Inc. Through this affiliation, OUC benefits from the marketing and distribution platforms provided by these affiliated dealerships. Consistent with other automobile warranty writers, loss reserve leverage measures are not material, as the bulk of liabilities and risk resides in the unearned premium reserve that is held to fund latent warranty claims as they develop and is elevated due to the multi-year earning pattern of extended warranties.
Best’s Financial Strength Rating: A Outlook: Stable
FIVE YEAR RATING HISTORY
KEY FINANCIAL INDICATORS