AM Best Places Credit Ratings of American Reliable Insurance Company Under Review With Negative Implications
AM Best has placed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating of 'a' (Excellent) of American Reliable Insurance Company (ARIC) under review with negative implications. This follows ARIC's sale of its farm, ranch, and equine business to Everett Cash Mutual Insurance Company (ECM) for approximately $85 million. After the sale, ARIC will no longer be part of Global Indemnity Group, which is significant for its group rating. The transaction is expected to close in Q1 2023, pending regulatory approvals.
- Global Indemnity is set to receive approximately $85 million from the sale of ARIC.
- The under review status for ratings indicates potential negative impacts on Global Indemnity's credit profile.
- ARIC's removal from Global Indemnity's intercompany pooling agreement may reduce financial stability.
These Credit Rating (rating) actions follow the recent announcement that ARIC, a
Under the proposed agreement,
Post-transaction close, ARIC will no longer be part of
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.
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Jieqiu Fan
Senior Financial Analyst
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jieqiu.fan@ambest.com
Senior Director
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daniel.ryan@ambest.com
Manager, Public Relations
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christopher.sharkey@ambest.com
Managing Director,
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jeffrey.mango@ambest.com
Source: AM Best
FAQ
What ratings has AM Best placed under review for Global Indemnity (GBLI)?
What is the reason for AM Best's negative implications for GBLI?
How much will Global Indemnity (GBLI) receive from the sale of ARIC?
When is the sale of ARIC expected to close?