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Press release content from Business Wire. The AP news staff was not involved in its creation.

AM Best Affirms Credit Ratings of Southern Pioneer Property and Casualty Insurance Company

August 30, 2021 GMT

OLDWICK, N.J.--(BUSINESS WIRE)--Aug 30, 2021--

AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Southern Pioneer Property and Casualty Insurance Company (Southern Pioneer) (Jonesboro, AR). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Southern Pioneer’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

Southern Pioneer’s balance sheet strength is supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Credit Adequacy Ratio (BCAR) and continued stabilization of loss reserves. The company’s balance sheet strength also benefits from increased financial flexibility following its acquisition by Biglari Holdings Inc. [NYSE: BH] in 2020.

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Southern Pioneer’s operating performance has stabilized following management’s decision to exit the Texas garage liability business, with the runoff nearly complete in 2021. The company’s limited business profile reflects its geographic concentration. Southern Pioneer has an appropriate ERM program that supports its risk profile.

This press release relates to Credit Ratings 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.

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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 www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210830005409/en/

CONTACT: Maxwell Gilberg

Financial Analyst

+1 908 439 2200, ext. 5684

maxwell.gilberg@ambest.com

Michelle Baurkot

Director

+1 908 439 2200, ext. 5314

michelle.baurkot@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE

SOURCE: AM Best

Copyright Business Wire 2021.

PUB: 08/30/2021 10:33 AM/DISC: 08/30/2021 10:33 AM

http://www.businesswire.com/news/home/20210830005409/en