OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Long-Term Issuer Credit Rating (Long-Term ICR) of “c” of Atlas Financial Holdings, Inc. (Atlas) [NASDAQ: AFH], and the Financial Strength Rating (FSR) of C (Weak) and the Long-Term ICRs of “ccc” of American Service Insurance Company Inc. (Schaumburg, IL), American Country Insurance Company (Schaumburg, IL) and Gateway Insurance Company (St. Louis, MO), collectively referred to as the American Service Pool. AM Best also has downgraded the FSR to C+ (Marginal) from C++ (Marginal) and the Long-Term ICR to “b-” from “b” of Global Liberty Insurance Company of New York (Global Liberty) (Melville, NY), another wholly owned subsidiary of Atlas. The outlook of these Credit Ratings (ratings) is negative. Concurrently AM Best has withdrawn these ratings as the companies have requested to no longer participate in AM Best’s interactive rating process.
The ratings of the American Service Pool reflect its balance sheet strength, which AM Best categorizes as very weak, as well as its marginal operating performance, neutral business profile and marginal enterprise risk management (ERM).
The ratings downgrades of Global Liberty take into consideration the significant reserve strengthening charge taken in the fourth quarter of 2018, which has resulted in material contraction in surplus and deterioration in risk-adjusted capitalization.
The ratings of Global Liberty reflect its balance sheet strength, which AM Best categorizes as weak, as well as its marginal operating performance, limited business profile and marginal ERM.
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 Understanding 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.
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