A.M. Best Comments on the Ratings of American Reliable Insurance Company Following Acquisition Announcement

A.M. Best has commented that the financial strength rating (FSR) of A (Excellent) and the issuer credit rating (ICR) of “a” of American Reliable Insurance Company (American Reliable) (Scottsdale, AZ) are unchanged following the announcement that Global Indemnity Group, Inc. (Global Indemnity), a subsidiary of Global Indemnity plc (Ireland) [NASDAQ:GBLI], has agreed to acquire American Reliable, a subsidiary of Assurant, Inc. (Assurant) (headquartered in New York) [NYSE:AIZ]. However, as discussed in detail below, the rating outlook for the ICR, which is currently positive for American Reliable, will likely be revised to stable following the completion of A.M. Best’s evaluation of the transaction after its close.

The closing is expected to take place in the first quarter of 2015, and is subject to regulatory approvals and other customary closing conditions. It is expected that American Reliable will become a participant in the existing Global Indemnity Reinsurance Company Ltd. pool (Global Indemnity pool) following the close of the transaction. The participants in the Global Indemnity pool currently have an FSR of A (Excellent) and ICRs of “a,” each with a stable outlook. For this reason, the positive outlook for the ICR of American Reliable is likely to be revised to stable upon the close and completion of A.M. Best’s assessment of the transaction.

American Reliable’s current ratings and strategic importance to Assurant will be re-evaluated should the transaction not close as anticipated.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• Catastrophe Analysis in A.M. Best Ratings
• Rating Members of Insurance Groups
• Risk Management and the Rating Process for Insurance Companies
• Understanding BCAR for Property/Casualty Insurers

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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