Infinity Property and Casualty Case Report

Marketing(Trevor Linscheid)
Slogan and employee values

Target Market
Infinity Auto provides three insurance coverage plans for personal auto as well as
coverage for commercial and exotic vehicles. Simply put, Infinity P&C aims to appeal to all
automotive markets. According to an annual Brand survey by Sentenium, Infinity was called the
most recognized brand among Hispanics suggesting that Infinity also aims to appeal to all
demographics.2 Under the community section on Infinitys website, Infinity explains that the
hispanic community has become a crucial part of the companys history. This is because the
hispanic community is Infinitys highest impact target market and includes some of Infinitys top
clients.
Philanthropic and Societal Collaboration
1 https://www5.apply2jobs.com/InfinityInsurance/ProfExt/why_infinity/infinity_culture.html
2 http://www.revolvy.com/main/index.php?s=Infinity%20Property%20%26%20Casualty&item_type=topic

In a recent public statement, Infinity announced their migration from the use of fleet SUV
vehicles to a more eco-friendly model fleet with an emphasis on fuel efficiency. This is a clear
representation made by Infinity P&C to join the go green3 movement. On Infinitys website, the
company states We dont just serve, we belong.4 Infinity accomplishes this through their
outreach to some of their best clients in the hispanic community as well as the creation of their
outreach program called Red Conmigo. This outreach program specializes in providing parents,
teachers, and children with access to bilingual books. The programs main goal is to encourage
individuals in the community to become bilingual as well as expose individuals to hispanic
culture. Ultimately, all of these things and more showcase Infinitys ability to be extremely active
in the community that it serves.
College Partnerships and Recruiting
Infinity P&C has a specific website for recruiting potential employees through specific
departments such as claims, accounting/finance, information systems, customer service, and
business development. The company also takes pride in making the list of 2010 best places to
work.5 Infinitys career website also highlights the opportunity to work within employee
development programs through Infinity University.

Market Share Among Peer Companies

As far as market share is concerned, Infinity holds only a 0.24% market share compared to its
peers. Factors contributing to this percentage include the lack of a parent company and a
smaller target market compared to its much bigger peers. Infinitys financial strength is above
par for its size and its ability to safeguard itself from potential losses is more than sufficient.
3 CEO Jim Gober http://www.greenfleetmagazine.com/
4 https://infinityauto.com/
5 careers.infinityauto.com

However, the fact of the matter is that its peers are much bigger in size and have much bigger
target markets allowing Infinitys peers to have a bigger market share.

Credit Ratings (Trevor Linscheid):

Snl.com
According to SNL, Infinity P&Cs last updated credit rating from Moodys was
Baa2 from September 2015. S&P gave Infinity P&C a BBB rating in February of
2004. Moodys previously gave Infinity a consistent rating of Baa3 until October of
2007 when the rating was updated to Baa2. However, both Moodys and S&P give
Infinity P&C a stable outlook.

Moodys credit rating agency states, Obligations rated Baa are judged to be
medium-grade and subject to moderate credit risk and as such may possess certain
speculative characteristics. Additionally, a Baa3 credit rating is slightly worse than a
Baa2 credit rating and so on. This suggests that Infinity P&C has a number of factors
affecting their credit rating even though their rating from Moodys has been slowly
improving since 2004.
https://www.moodys.com/sites/products/AboutMoodysRatingsAttachments/MoodysRatin
gSymbolsandDefinitions.pdf
S&Ps credit rating guidelines states that An obligation rated BBB exhibits
adequate protection parameters. However, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity of the obligor to meet its
financial commitment on the obligation. ..
https://www.standardandpoors.com/en_AU/web/guest/article/-/view/sourceId/504352

https://www.snl.com/InteractiveX/article.aspx?
ID=33949399&KPLT=2
Aside from an SNL article from 2007, there has been no recent publicity involving
the credit rating of Infinity P&C. The 2007 article showcases the change to the Baa2
credit rating given to the company by Moodys. The article also reaffirms that the outlook
for this particular rating is stable. Most importantly, however, the article points out that
Infinitys strengths as they relate to its credit rating are tempered by Infinitys narrow
product and geographic focus as well as its relatively high adjusted financial leverage.