OLDWICK: 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.
The outlook of these Credit Ratings remains stable. First Guard is a subsidiary of Biglari Holdings Inc.
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.