Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

A.M. Best Co. avowed the Issuer Credit Rating (ICR) of "bbb" of Global Indemnity plc (GBLI). Concurrently, the rating agency reiterated the financial strength rating (FSR) of A (Excellent) and ICR of "a" of Wind River Reinsurance Company, Ltd. and its U.S. subsidiaries. Wind River is the subsidiary of Global Indemnity.

Additionally, A.M. Best reiterated the indicative ratings of "bbb" on senior unsecured debt, "bbb-" on subordinated unsecured debt and "bb+" on preferred stock of Global Indemnity.

All the ratings carry a stable outlook.

The rating affirmations came on the back of continued improved operational performances, diverse array of specialty product offerings in the United States and reinsurance in Bermuda and sturdy capitalization

However, a weak performance from specialty insurance operations in the United States and continued low interest rate environment dwarf the positives.

Nevertheless, solid performances from Wind River Re outperforming industry, sustained sturdy risk-adjusted capitalization, stabilized reserves coupled with the ability to achieve targets might drive rating upgrades.

Nonetheless, the ratings will be subject to downgrade if risk-adjusted capitalization erodes, operating results deteriorates or reserves fall.

Rating affirmations or upgrades from credit rating agencies play an important part in retaining investor confidence on the stock as well as maintaining credit worthiness in the market. Rating downgrades, therefore, adversely affect the business, apart from increasing the costs of future debt issuances. We believe that strong ratings will help Global Indemnity retain investor confidence and help it write more businesses going forward, thereby boosting results.

Global Indemnity carries a Zacks Rank #3 (Hold). Property and casualty insurers HCI Group, Inc. (HCI - Snapshot Report), Montpelier Re Holdings Ltd. (MRH - Analyst Report) and Platinum Underwriters Holdings Ltd. (PTP - Snapshot Report) among others, carry a Zacks Rank #1(Strong Buy) and appear impressive.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDST ENLC 36.29 +1.60%
BNC BANCORP BNCN 17.33 +1.58%