A.M. Best Removes From Under Review and Affirms Ratings of Global Liberty Insurance Company of New York

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has removed from under review with negative implications and affirmed the financial strength rating of B+ (Good) and the issuer credit rating of “bbb-” of Global Liberty Insurance Company of New York. (Global) (Melville, NY). The outlook assigned to both ratings is negative. Global is a subsidiary of Atlas Financial Holdings, Inc. (Atlas) (Cayman Islands) (NASDAQ:AFH).

The ratings of Global were placed under review with negative implications following Atlas’ announcement that it was acquiring Global along with its affiliated underwriting and premium finance companies. The removal of the ratings from under review follows the close of the transaction as well as the completion of additional discussions with management regarding its current and prospective business plans. The ratings of Atlas and its other insurance companies remain unchanged.

The ratings for Global reflect its expertise within the for-hire-livery vehicle market in the New York City metropolitan area and improved capital position as a result of a $3.5 million capital infusion made by its new parent, Atlas. These positive rating factors are offset by Global’s deteriorating underwriting and operating results in recent years, driven mainly by unfavorable prior year loss reserve development related primarily to assigned risk and run-off business, which resulted in declines in surplus in 2012 and 2013. Additionally, Global has reported volatile risk-adjusted capitalization, driven by substantial growth in net premiums written as a result of the cancellation of quota share reinsurance in prior years. Although Atlas’ management is committed to initiating appropriate actions in order to improve performance and reduce volatility, the negative outlook reflects A.M. Best’s concerns surrounding the adequacy of Global’s loss reserves and recent volatility in underwriting and operating performance.

This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.

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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A.M. Best Company

Michael Russo, 908-439-2200, ext. 5372

Senior Financial Analyst

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Michael Lagomarsino, CFA, FRM, 908-439-2200, ext. 5810

Vice President

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Christopher Sharkey, 908-439-2200, ext. 5159

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Jim Peavy, 908-439-2200, ext. 5644

Assistant Vice President, Public Relations

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Source: A.M. Best Company