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

AM Best has affirmed Global Indemnity Group's A (Excellent) credit rating with a stable outlook. The company's strong balance sheet and adequate operating performance are driven by its core commercial specialty business, which serves small to middle-market customers. Subsidiaries Diamond State Insurance, Penn-America, Penn-Patriot, Penn-Star, and United National Insurance also received stable ratings.

AM Best, a leading global credit rating agency, has affirmed Global Indemnity Group's Financial Strength Rating (FSR) of A (Excellent) and its Long-Term Issuer Credit Ratings (Long-Term ICR) of "a" (Excellent) for its U.S. operating subsidiaries. The ratings reflect the company's strong balance sheet and adequate operating performance, driven by its core commercial specialty business, which serves small to middle-market customers. The outlook for these ratings is stable [1].

The ratings were affirmed 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, and United National Insurance Company. These subsidiaries also received stable ratings, indicating their strong financial health and operational efficiency [1].

Global Indemnity's balance sheet strength is assessed as the strongest, with its risk-adjusted capitalization at the highest level, as measured by Best’s Capital Adequacy Ratio (BCAR). This is supported by a strategically conservative investment portfolio, generally prudent reserving practices, and the added financial flexibility afforded by its parent’s access to the capital markets. The company currently has no long-term debt in its capital structure [1].

The company's operating earnings have generally been comparable to its peers over the past five years. Its core commercial specialty business, which focuses on small to middle-market customers, has been consistently profitable. However, other non-core businesses exhibited more volatility in earlier years due to catastrophe and secondary peril exposures, including wind and wildfire. In recent years, Global Indemnity has largely exited these more volatile non-core businesses to concentrate on its core competencies, resulting in a more consistent earnings pattern [1].

Global Indemnity is composed of several long-standing and well-recognized franchises that provide a diverse mix of business through multiple distribution channels. Through its five-member intercompany pool, the group targets specialty niche business, which is generally not offered in the standard insurance marketplace. Prospectively, AM Best expects Global Indemnity to continue to focus on its core businesses, which are small to middle markets that are specialty in nature [1].

References:
[1] https://news.ambest.com/pr/PressContent.aspx?altsrc=2&refnum=36323
[2] https://www.morningstar.com/news/business-wire/20250808195201/global-indemnity-group-llc-announces-am-best-affirmation-of-a-excellent-rating
[3] https://finance.yahoo.com/news/am-best-affirms-credit-ratings-132100248.html