OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with developing implications 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). First Guard is a subsidiary of Biglari Holdings Inc. [NYSE: BH].

The Credit Ratings (ratings) of First Guard have been placed under review with developing implications following the approval of a reinsurance agreement submitted to the Arizona Department of Insurance. The filing establishes a quota share reinsurance agreement with Biglari Reinsurance Ltd. (Biglari Re). Biglari Re, a recently established Bermuda-licensed affiliated reinsurer and a part of the Biglari Insurance Group Inc., a well-capitalized entity with roughly $395 million in contributed capital from its ultimate parent, Biglari Holdings Inc.

The under review with developing implications status considers the expected inclusion of First Guard into a new group with a much larger capital base. As a result, First Guard will likely be afforded added financial flexibility and improved risk-adjusted capitalization at the onset of the new relationship. The ratings will remain under review with developing implications until AM Best evaluates the new group’s financial strength.

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