A.M. Best Assigns Issuer Credit Rating to Global Indemnity Limited and Issue Credit Rating to Its New Subordinated Note Offering

Business Wire 20-Mar-2017 7:39 PM

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Besthas 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 Indemnitys shelf registration. The outlook assigned to these Credit Ratings (ratings) is stable. All remaining ratings of Global Indemnity and its subsidiaries are unchanged.

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 groups 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 As a result, A.M. Best has withdrawn the Long-Term ICR of bbb of Global Unlimited. Also, A.M. Best has withdrawn the indicative Long-Term IRs on the previous shelf registration from Global Unlimited and the Long-Term IR of $100 million 7.75% subordinated notes due 2045.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 Indemnitys adjusted debt-to-total capital and adjusted debt-to-tangible capital are each approximately 20%, and both ratios are within A.M. Bests guidelines for its current rating level. In addition, Global Indemnitys 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. Bests 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. Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Bests Credit Ratings .

A.M. Best is the worlds oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

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A.M. Best Jieqiu Fan, +1 908-439-2200, ext. 5372 Senior Financial Analyst jieqiu.fan@ambest.com orDaniel Ryan, +1 908-439-2200, ext. 5325Senior Directordaniel.ryan@ambest.comorChristopher Sharkey, +1 908-439-2200, ext. 5159Manager, Public Relationschristopher.sharkey@ambest.comorJim Peavy, +1 908-439-2200, ext. 5644Director, Public Relationsjames.peavy@ambest.com

Source: A.M. Best