Press Release - DECEMBER 04, 2018

A.M. Best Affirms Credit Ratings of First Guard Insurance Company


CONTACTS:
 Jeffrey Stary, CPCU, ARe, ARM
Financial Analyst
+1 908 439 2200, ext. 5689
jeffrey.stary@ambest.com

Raymond Thomson, CPCU, ARe, ARM
Associate Director
+1 908 439 2200, ext. 5621
raymond.thomson@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - DECEMBER 04, 2018
A.M. 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 A.M. Best categorizes as strongest, as well as its very strong operating performance, limited 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 very strong and stable long-term operating performance, 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.

A.M. 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 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.


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AMB# Company Name
054090 Biglari Holdings Inc.
012082 First Guard Insurance Company