AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of First Guard Insurance Company (First Guard) (Scottsdale, AZ). The outlook of these Credit Ratings (ratings) is stable. First Guard is a subsidiary of Biglari Holdings Inc. [NYSE: BH].
The ratings reflect First Guard’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
The ratings consider First Guard’s strongest risk-adjusted capitalization, supported by low underwriting and investment leverage, significant surplus growth in recent years, consistently profitable and stable long-term operating performance and conservative underwriting discipline. The ratings also reflect the company’s extensive expertise in the trucking physical damage market segment and a strong experienced management team that has a long history of success. Partially offsetting these positive rating factors is First Guard’s narrow product focus within the commercial automobile line of business.
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