AM Best Places American Reliable Credit Scores in Arizona Under Review

AM Best placed under review with negative implications the Financial Strength Rating (FSR) of A (Excellent) and the Issuer’s Long Term Credit Rating (Long Term ICR) of “a” (Excellent) of American Reliable Insurance Co. in Scottsdale, Arizona.

American Reliable is a member of Global Indemnity Group LLC.

These actions follow the recent announcement that ARIC has completed the sale of its farm, ranch and horse renewal business to Everett Cash Mutual Insurance Co. Global Indemnity also announced that it has agreed to sell ARIC to ECM .

Under the proposed agreement, Global Indemnity will receive approximately $85 million, including the release of capital currently supporting ARIC’s operations. Until ECM acquires ARIC, ECM will provide Global Indemnity with 100% quota share reinsurance subject to the renewal rights agreement with ECM. The sale of ARIC is expected to close in the first quarter of 2023 and is subject to customary regulatory approvals, according to AM Best/

Following the closing of the agreement, ARIC will no longer be a part of Global Indemnity and will no longer be a member of the Global Indemnity intercompany pooling agreement, from which its ratings are derived. The status under review with negative implications reflects the early removal of the group’s rating and the early transfer of risk to ECM from Global Indemnity, according to AM Best.

AM Best Arizona

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