AM Best Places Credit Ratings of First Guard Insurance Company Under Review With Developing Implications

AM Best has placed under review with developing implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of First Guard Insurance Company (First Guard) (Scottsdale, AZ). First Guard is a subsidiary of Biglari Holdings Inc. [NYSE: BH].

The Credit Ratings (ratings) of First Guard have been placed under review with developing implications following the approval of a reinsurance agreement submitted to the Arizona Department of Insurance. The filing establishes a quota share reinsurance agreement with Biglari Reinsurance Ltd. (Biglari Re). Biglari Re, a recently established Bermuda-licensed affiliated reinsurer and a part of the Biglari Insurance Group Inc., a well-capitalized entity with roughly $395 million in contributed capital from its ultimate parent, Biglari Holdings Inc.

The under review with developing implications status considers the expected inclusion of First Guard into a new group with a much larger capital base. As a result, First Guard will likely be afforded added financial flexibility and improved risk-adjusted capitalization at the onset of the new relationship. The ratings will remain under review with developing implications until AM Best evaluates the new group’s financial strength.

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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