$2bn recall will not affect lines
Toyota’s US-based captive will not be affected by the company’s product recall, AM Best has confirmed.
The rating agency has been in dialogue with Iowa-based Toyota Motor Insurance Company and has established that none of the lines the US captive writes is impacted by an aggregated product recall announced by Toyota last week.
The cost of the recall, which runs to 2.3 million cars around the world, is thought to be in the region of $2bn (£1.27bn). Toyota will decide whether to shoulder the cost itself or whether any liabilities will be incurred by its other captives, or by its insurers and reinsurers.