WILMINGTON, DE — AM Best affirmed its A (Excellent) financial strength rating for Global Indemnity Group, LLC’s (Nasdaq: GBLI) U.S. insurance subsidiaries, citing the insurer’s capital position and profitable commercial specialty business as key supports for its credit profile.
The rating agency also affirmed the subsidiaries’ long-term issuer credit ratings at “a” (Excellent), according to Global Indemnity.
AM Best assessed Global Indemnity’s risk-adjusted capitalization at its strongest level under the agency’s Best’s Capital Adequacy Ratio, or BCAR, framework.
The agency attributed that position in part to what it characterized as a strategically conservative investment portfolio and the additional financial flexibility provided by the parent company’s access to capital markets.
Operating performance has been supported by Global Indemnity’s core commercial specialty insurance business, which serves small- and middle-market customers, AM Best stated.
The agency also pointed to the insurer’s mix of established businesses and multiple distribution channels as factors in its assessment.
The affirmation extends a long-running ratings record for Global Indemnity’s insurance operations. United National Insurance Company, the company’s predecessor, has maintained an A (Excellent) rating continuously since 2003, when Fox Paine acquired the company.
Penn-America Insurance Company was rated A- when it was acquired in 2005 and has carried an A (Excellent) rating since 2007.
Global Indemnity characterized the latest action as marking 24 consecutive years in which its insurance operations have held an A rating, based on United National’s continuous rating history.
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