CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - MARCH 02, 2018 02:05 PM (EST)
A.M. Best has placed under review with negative implications the Long-Term Issuer Credit Rating (Long-Term ICR) of “b-” of Atlas Financial Holdings, Inc. (Atlas) [NASDAQ: AFH], the Financial Strength Rating (FSR) of B (Fair) and the Long-Term ICR of “bb” of American Service Insurance Company Inc., American Country Insurance Company (both domiciled in Elk Grove Village, IL) and Gateway Insurance Company (St. Louis, MO), collectively referred to as American Service Pool. A.M. Best also has placed under review with negative implications the FSR of B+ (Good) and the Long-Term ICR of “bbb-” of Global Liberty Insurance Company of New York (Global Liberty) (Melville, NY), another wholly owned subsidiary of Atlas.
The ratings actions follow the March 1, 2018 announcement by Atlas that it took a significant reserve strengthening charge in the fourth quarter in its insurance operations, primarily related to Michigan-related claims and non-New York Global Liberty business written prior to 2016. A.M. Best expects the reserve strengthening to have a significant impact on statutory equity, reducing surplus at American Service Pool by approximately 32% and at Global Liberty by approximately 36%. The ratings will remain under review until A.M. Best completes its evaluation of this impact on the companies’ balance sheet strength and operating performance.
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 the world’s oldest and most authoritative insurance rating and information source.