AM Best Affirms Credit Ratings of Global Indemnity Group, LLC and Its Subsidiaries

AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issue Credit Ratings (Long-Term ICR) of “a” (Excellent) of the U.S. operating subsidiaries of Global Indemnity Group, LLC (Global Indemnity) (Delaware) [NYSE: GBLI]. Concurrently, AM Best has affirmed the Long-Term ICR of “bbb” (Good) of Global Indemnity. (See below for a complete list of companies and ratings.) The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Global Indemnity’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The balance sheet strength assessment reflects Global Indemnity’s risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by a conservative investment portfolio, generally conservative reserving practices, as well as the added financial flexibility through its parent’s access to capital markets. Through Global Indemnity’s five-member intercompany pool, the group targets a diverse mix of specialty niche business that is generally not offered in the standard insurance marketplace. Global Indemnity currently has no long-term debt in its capital structure.

The group’s operating earnings have generally been in line with its peers over the last five years. While Penn-America, the group’s core commercial specialty segment, which focuses on small- to middle-market customers, has been consistently profitable, other operating segments had been more volatile, mostly driven by exposure to catastrophes and secondary perils, including wind and wildfire. In recent years, the group has exited these more volatile business segments to concentrate on its core competencies, which is expected to continue to result in a more consistent pattern of earnings. Global Indemnity is composed of several long-standing and well-recognized franchises that provide a diverse mix of business through multiple distribution channels. Prospectively, AM Best expects the group to continue to focus on its core businesses, which are small to middle markets that are specialty in nature.

The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed with stable outlooks for the following subsidiaries of Global Indemnity Group, LLC:

• 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 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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