AM Best has assigned a Long-Term Issuer Credit Rating (Long-Term IR) of "bbb" to the newly created Global Indemnity Group, LLC (Global Indemnity) (Delaware) [NASDAQ: GBLI], which has replaced Global Indemnity Limited (Cayman Island) as the ultimate parent of its U.S. subsidiaries. The outlook assigned to this Credit Rating (ratings) is stable. At the same time, AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long Term Issue Credit Rating (Long-Term ICR) of "a" of the U.S. operating subsidiaries of Global Indemnity. (See below for complete list of companies).
AM Best also has affirmed the Long-Term IR of "bbb-" on the $130 million 7.875% subordinated notes due 2047, as well as the indicative Long-Term IRs on its shelf registration of "bbb" on senior unsecured debt, "bbb-" on subordinated debt and "bb+" on the preferred stock of Global Indemnity Limited, now guaranteed by Global Indemnity. The outlook of these ratings is stable.
The ratings reflect Global Indemnity’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
In late August 2020, Global Indemnity Limited and its Bermuda subsidiary, Global Indemnity Reinsurance Company Ltd. (Global Indemnity Re) re-domiciled to the United States. On Aug. 26, 2020, Global Indemnity Re was merged into its subsidiary, Penn-Patriot Insurance Company, and as a consequence, AM Best has withdrawn the FSR of A (Excellent) and Long-Term ICR of "a" of Global Indemnity Re. On Aug. 28, 2020, Global Indemnity, through a merger transaction, replaced Global Indemnity Limited as the publicly listed parent company of its subsidiaries.
The organization’s re-domiciling to the United States simplifies and streamlines Global Indemnity’s organizational, statutory and regulatory structure, which is expected to result in inter-company efficiencies and long-term administrative cost savings.
The FSR of A (Excellent) and the Long-Term ICRs of "a" have been affirmed with stable outlooks for the subsidiaries of Global Indemnity Group, LLC:
American Reliable Insurance Company
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 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.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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