
AM Best Places credit ratings of the reliable American…
OLDWICK, NJ–(BUSINESS WIRE)–am best has a Financial Strength Rating (FSR) of A (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) from the American Reliable Insurance Company (ARIC) (Scottsdale, AZ), a Member of Global Indemnity Group, LLC (Global Indemnity) [NYSE: GBLI].
These credit rating (rating) actions follow the recent announcement that ARIC, a subsidiary of Global Indemnity, completed the divestment of its Farm, Ranch and Equine Book of Renewal businesses to Everett Cash Mutual Insurance Company (ECM ) has completed. Global Indemnity also announced that it has agreed to sell ARIC to ECM.
Under the proposed agreement, Global Indemnity will receive approximately $85 million, including the release of capital currently supporting ARIC’s operations. Until ECM acquires ARIC, ECM Global Indemnity will provide 100% quota reinsurance in respect of policies subject to ECM’s Extension Rights Agreement. The sale of ARIC is expected to close sometime in the first quarter of 2023 and is subject to customary regulatory approvals.
Upon closing of the transaction, ARIC will no longer be part of Global Indemnity nor a member of Global Indemnity’s intercompany pooling arrangement from which its ratings are derived. The status of “Under Review with Adverse Impact” reflects the expected de-rating of the group and the expected transfer of risk from Global Indemnity to ECM.
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