AM Best Affirms Ratings of First Guard Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of First Guard Insurance Company (First Guard) (Venice, FL). The outlook of these Credit Ratings (ratings) remains stable. First Guard is a subsidiary of Biglari Holdings Inc. [NYSE: BH].

The ratings reflect First Guard’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The ratings consider First Guard’s strong risk-adjusted capitalization, supported by low underwriting and investment leverage, consistently profitable and stable long-term operating performance and prudent and conservative underwriting discipline. The ratings also reflect the company’s extensive expertise in the trucking physical damage market segment. Partially offsetting these positive rating factors are First Guard’s narrow product focus within the commercial automobile line of business and below-average investment yields.

AM Best believes that the ratings are well-positioned at this time, and expects that trends in risk-adjusted capitalization and operating performance will continue in the near to medium term.

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Jeffrey Stary, CPCU, ARe, ARM

Financial Analyst

+1 908 439 2200, ext. 5689

[email protected]

Raymond Thomson, CPCU, ARe, ARM

Director

+1 908 439 2200, ext. 5621

[email protected]

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

[email protected]

Source: AM Best