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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 Rating (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 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, conservative reserving practices and the added financial flexibility through its access to the capital markets. While prior year loss reserve development had been consistently favorable in the past, the group reported a small adverse reserve development in 2021 driven by two programs that have since been canceled. Through Global Indemnity’s six-member intercompany pool, the group targets a diverse mix of specialty niche business that is generally not offered in the standard insurance marketplace. In April 2022, Global Indemnity redeemed its $130 million subordinated debt and currently has no long term debt in its capital structure.

The group’s operating earnings have generally performed in line with its peers over the past five years. While the core commercial specialty segment, which focuses on small to middle market customers, has been consistently profitable, other operating segments have been more volatile, mostly driven by exposure to catastrophes, including wind and wildfire. In October 2021, the group sold the renewal rights related to its manufactured and dwelling home products to K2 Insurance Services, which was part of the group’s specialty property segment and inherited from its acquisition of American Reliable Insurance Company in 2015. This move continued with Global Indemnity’s goal of cutting catastrophe exposure by exiting business lines and states that have concentrated exposures.

Global Indemnity’s business profile is assessed at neutral. The group is composed of several long-standing and well-recognized franchises that provide a diverse mix of business through multiple distribution channels. In 2021, Global Indemnity appointed David S. Charlton as its new Chief Executive. He is a 34-year veteran property & casualty insurance industry senior executive, with particular expertise in excess and surplus, binding authority, small business and other specialty insurance – a background well aligned with that of Global Indemnity. In the same year, the group also appointed Reiner Mauer as chief operations officer, who along with other newly appointed business leaders have had highly successful careers managing small business casualty underwriting operations. Along with these appointments, AM Best expects the group to renew its focus in core businesses that are comprised of small to middle market businesses 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 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 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

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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