OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has placed under review with negative implications the Long-Term Issuer Credit Rating (Long-Term ICR) of “b-” of Atlas Financial Holdings, Inc. (Atlas) [NASDAQ: AFH], the Financial Strength Rating (FSR) of B (Fair) and the Long-Term ICR of “bb” of American Service Insurance Company Inc., American Country Insurance Company (both domiciled in Elk Grove Village, IL) and Gateway Insurance Company (St. Louis, MO), collectively referred to as American Service Pool. A.M. Best also has placed under review with negative implications the FSR of B+ (Good) and the Long-Term ICR of “bbb-” of Global Liberty Insurance Company of New York (Global Liberty) (Melville, NY), another wholly owned subsidiary of Atlas.
The ratings actions follow the March 1, 2018 announcement by Atlas that it took a significant reserve strengthening charge in the fourth quarter in its insurance operations, primarily related to Michigan-related claims and non-New York Global Liberty business written prior to 2016. A.M. Best expects the reserve strengthening to have a significant impact on statutory equity, reducing surplus at American Service Pool by approximately 32% and at Global Liberty by approximately 36%. The ratings will remain under review until A.M. Best completes its evaluation of this impact on the companies’ balance sheet strength and operating performance.
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