OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with developing implications 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 Credit Ratings (ratings) of Southern Pioneer have been placed under review with developing implications following its submission of a reinsurance agreement to the Arkansas Department of Insurance on Nov. 13, 2024. The filing establishes a funds withheld 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., is 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 Southern Pioneer into a new group with a much larger capital base. As such, Southern Pioneer 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 pending customary regulatory approval and until AM Best evaluates the financial strength of the new group.
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