This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A.M. Best Affirms Ratings Of Global Indemnity Plc And Its Subsidiaries

A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of “a” of Wind River Reinsurance Company, Ltd. (Wind River Re) (Hamilton, Bermuda) and its U.S. subsidiaries. Concurrently, A.M. Best has affirmed the ICR of “bbb” of the ultimate parent holding company of Wind River Re, Global Indemnity plc (Global Indemnity) (Dublin, Ireland) [NASDAQ: GBLI]. The outlook for all ratings is stable.

At the same time, A.M. Best has withdrawn the ICR of “bbb” and debt ratings of the intermediate parent holding company, United America Indemnity, Ltd. (UAI) (George Town, Cayman Islands) due to the transfer of its universal shelf registration to Global Indemnity. Accordingly, A.M. Best has assigned indicative ratings of “bbb” on senior unsecured debt, “bbb-” on subordinated unsecured debt and “bb+” on preferred stock to Global Indemnity’s shelf registration. The outlook for these ratings is stable. These indicative ratings and outlook are consistent with the previous ratings of the UAI shelf registration.

These ratings take into account Global Indemnity’s solid capitalization, strong historical operating performance and its diversified portfolio of specialty products provided on both an admitted and non-admitted basis by Wind River Re and its U.S. subsidiaries. The U.S. subsidiaries operate under a single pooling agreement, whereby they pool their premiums and liabilities and cede 50% of their combined net retained liabilities to Wind River Re. Wind River Re also continues to maintain a book of unaffiliated, third-party reinsurance to complement the affiliated business.

These positive rating factors are partially offset by the recent deterioration in the company’s combined ratio due to severe weather losses in both its insurance and reinsurance operations. In addition, losses in the professional and general liability lines have adversely impacted operating results. While A.M. Best does not believe that recent results are indicative of a trend, it will continue to monitor the results of Global Indemnity. Of special importance will be the company’s ability to successfully execute on the business plans implemented by its newly appointed Chief Executive Officer (CEO), Cynthia Valko. Ms. Valko, who has an extensive insurance background, became CEO of Global Indemnity on September 19, 2011.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs