AM Best Affirms Credit Ratings of Global Indemnity Group, LLC and Its Subsidiaries
August 01 2024 - 4:31PM
Business Wire
AM Best has affirmed the Financial Strength Rating (FSR)
of A (Excellent) and the Long-Term Issue Credit Ratings (Long-Term
ICR) of “a” (Excellent) of the U.S. operating subsidiaries of
Global Indemnity Group, LLC (Global Indemnity) (Delaware) [NYSE:
GBLI]. Concurrently, AM Best has affirmed the Long-Term ICR of
“bbb” (Good) of Global Indemnity. (See below for a complete list of
companies and ratings.) The outlook of these Credit Ratings
(ratings) is stable.
The ratings reflect Global Indemnity’s balance sheet strength,
which AM Best assesses as strongest, as well as its adequate
operating performance, neutral business profile and appropriate
enterprise risk management.
The balance sheet strength assessment reflects Global
Indemnity’s risk-adjusted capitalization being at the strongest
level, as measured by Best’s Capital Adequacy Ratio (BCAR),
supported by a conservative investment portfolio, generally
conservative reserving practices, as well as the added financial
flexibility through its parent’s access to capital markets. Through
Global Indemnity’s five-member intercompany pool, the group targets
a diverse mix of specialty niche business that is generally not
offered in the standard insurance marketplace. Global Indemnity
currently has no long-term debt in its capital structure.
The group’s operating earnings have generally been in line with
its peers over the last five years. While Penn-America, the group’s
core commercial specialty segment, which focuses on small- to
middle-market customers, has been consistently profitable, other
operating segments had been more volatile, mostly driven by
exposure to catastrophes and secondary perils, including wind and
wildfire. In recent years, the group has exited these more volatile
business segments to concentrate on its core competencies, which is
expected to continue to result in a more consistent pattern of
earnings. Global Indemnity is composed of several long-standing and
well-recognized franchises that provide a diverse mix of business
through multiple distribution channels. Prospectively, AM Best
expects the group to continue to focus on its core businesses,
which are small to middle markets that are specialty in nature.
The FSR of A (Excellent) and the Long-Term ICRs of “a”
(Excellent) have been affirmed with stable outlooks for the
following subsidiaries of Global Indemnity Group, LLC:
- Diamond State Insurance Company
- Penn-America Insurance Company
- Penn-Patriot Insurance Company
- Penn-Star Insurance Company
- United National Insurance Company
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
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 www.ambest.com.
Copyright © 2024 by A.M. Best Rating
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Ricardo Longchallon Senior Financial Analyst +1
908 882 2019 ricardo.longchallon@ambest.com
Sharon Marks Director +1 908 882 2092
sharon.marks@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310 christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com