AM Best Affirms Credit Ratings of Global Indemnity Group, LLC and Its Subsidiaries

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer 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 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 and the added financial flexibility through its access to the 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 performed generally in line with its peers over the past five years. While the core commercial specialty segment, which focuses on small- to middle-market customers, has been profitable consistently, other operating segments have been more volatile, mostly driven by exposure to catastrophes and secondary perils, including wind and wildfire. Over the past two years, the group has exited these more volatile business segments to concentrate on its core competencies, which is expected 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 will be focused 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 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.

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