AM Best Places Credit Ratings of American Reliable Insurance Company Under Review With Negative Implications
August 18 2022 - 2:26PM
Business Wire
AM Best has placed under review with negative
implications the Financial Strength Rating (FSR) of A (Excellent)
and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a”
(Excellent) of American Reliable Insurance Company (ARIC)
(Scottsdale, AZ), a member of Global Indemnity Group, LLC (Global
Indemnity) [NYSE: GBLI].
These Credit Rating (rating) actions follow the recent
announcement that ARIC, a Global Indemnity subsidiary, completed
the disposition of its farm, ranch and equine book of renewal
business to Everett Cash Mutual Insurance Company (ECM). Global
Indemnity also announced that it agreed to sell ARIC to ECM.
Under the proposed agreement, Global Indemnity will receive
approximately $85 million, including the release of capital
currently supporting ARIC’s operations. Until ECM acquires ARIC,
ECM will be providing Global Indemnity with 100% quota share
reinsurance with respect to policies subject to the renewal rights
agreement with ECM. The sale of ARIC is expected to close sometime
in the first quarter of 2023 and is subject to customary regulatory
approvals.
Post-transaction close, ARIC will no longer be part of Global
Indemnity and will no longer be a member of Global Indemnity’s
intercompany pooling agreement from which its ratings are derived.
The under review with negative implications status reflects the
anticipated removal of the group rating and the anticipated
transfer of risk to ECM from Global Indemnity.
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 media use of Best’s Credit Ratings and AM Best press
releases, please view Guide for Media - Proper Use of Best’s
Credit Ratings and AM Best Rating Action Press
Releases.
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 New York, London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
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Jieqiu Fan Senior Financial Analyst +1 908 439
2200, ext. 5372 jieqiu.fan@ambest.com
Daniel J. Ryan Senior Director +1 908 439 2200,
ext. 5325 daniel.ryan@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Jeff Mango Managing Director, Strategy &
Communications +1 908 439 2200, ext. 5204
jeffrey.mango@ambest.com
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