AM Best Affirms Credit Ratings of First Guard Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of First Guard Insurance Company (First Guard) (Scottsdale, AZ). The outlook of these Credit Ratings (ratings) is stable. First Guard is a subsidiary of Biglari Holdings Inc. [NYSE: BH].

The ratings reflect First Guard’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The stable outlooks reflect AM Best’s expectation that First Guard will maintain its very strong overall balance sheet strength assessment, supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Further, underwriting metrics remain well below composite averages benefiting from cumulative growth in surplus over the most recent five-year period, accompanied by consistent reserve redundancies. Surplus declined one year within that time due to an extraordinary dividend issued to the parent company. First Guard demonstrates strong operating performance, which outpaces composite average benchmarks, contributing to surplus growth. The company is expanding its product lines cautiously into trucking liability and cargo insurance, leveraging extensive experience and expertise within the commercial trucking industry. First Guard’s risk management framework actively identifies risks and responds to an evolving economic and regulatory environment by incorporating mitigation strategies at various levels within the 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.

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