A.M. Best has assigned a Long-Term Issuer Credit Rating of “bbb”
to the newly created Global Indemnity Limited (Global Indemnity)
(Cayman Islands) (NASDAQ:GBLI), replacing Global Indemnity Unlimited
Company (Global Unlimited) (Dublin, Ireland) as the ultimate parent
of Global Indemnity Reinsurance Company Ltd. and its U.S.
subsidiaries. A.M. Best also has assigned a Long-Term Issue Credit
Rating (Long-Term IR) of “bbb-” to the $120 million 7.875% subordinated
notes due 2047; and $100 million 7.75% subordinated notes due 2045 of
Global Indemnity. Additionally, A.M. Best has assigned indicative
Long-Term IRs of “bbb” to senior unsecured debt, “bbb-” to subordinated
debt and “bb+” to the preferred stock of Global Indemnity’s shelf
registration. The outlook assigned to these Credit Ratings (ratings) is
stable. All remaining ratings of Global Indemnity and its subsidiaries
In November 2016, Global Indemnity was formed, acting as the ultimate
parent for the group. Global Indemnity is domesticated in the Cayman
Islands and was formed to replace the group’s former parent, Global
Unlimited, domiciled in Dublin, Ireland. Global Unlimited is essentially
a dormant shell and is in the process of being dissolved. As a result,
A.M. Best has withdrawn the Long-Term ICR of “bbb” of Global Unlimited.
Also, A.M. Best has withdrawn the indicative Long-Term IRs on the
previous shelf registration from Global Unlimited and the Long-Term IR
of $100 million 7.75% subordinated notes due 2045.
The proceeds from the issuance will be used for general corporate
purposes. With the issuance of the subordinated notes, Global
Indemnity’s adjusted debt-to-total capital and adjusted debt-to-tangible
capital are each approximately 20%, and both ratios are within A.M.
Best’s guidelines for its current rating level. In addition, Global
Indemnity’s interest coverage ratio is expected to remain satisfactory
for its ratings.
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.
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