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AM Best Affirms Credit Ratings of First Guard Insurance Company
[January 20, 2022]

AM Best Affirms Credit Ratings of First Guard Insurance Company

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a+" (Excellent) of First Guard Insurance Company (First Guard) (Scottsdale, AZ). The outlook of these Credit Ratings (ratings) is stable. First Guard is a subsidiary of Biglari Holdings Inc. [NYSE: BH].

The ratings reflect First Guard's balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The ratings consider First Guard's strongest risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), supported by low underwriting and investment leverage, significant surplus growth in recent years, consistently profitable 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 and a strong experienced management team that has committed to writing a geographically diverse book of business. Partially offsetting these positive rating factors is First Guard's narrow product focus within the commercial automobile line of business. First Guard's ERM process is focused on risk identification and mitigation strategies with input from senior management and the board of directors.

This press release relates to CreditRatings that have been published on AM 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 AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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