AM Best Affirms Credit Ratings of American Financial Group, Inc. and Its Key Operating Subsidiaries

AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of Great American Insurance Company and its pooling affiliates, collectively referred to as Great American Insurance Companies (Great American). Concurrently, AM Best has affirmed the Long-Term ICR of “a-” (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IRs) of American Financial Group, Inc. (AFG) [NYSE: AFG]. The outlook of these Credit Ratings (ratings) is stable.

At the same time, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) of the property/casualty (P/C) members of the Great American Contemporary Pool (collectively, Great American Contemporary). The outlook of these ratings is stable. The Republic companies within Great American Contemporary are headquartered in Calabasas, CA, and most Bridgefield companies are headquartered in Lakeland, FL.

AM Best also has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) of the P/C members of the Mid-Continent Group (Mid-Continent) (headquartered in Tulsa, OK). Additionally, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) of National Interstate Insurance Company (headquartered in Richfield, OH) and its affiliates (collectively referred to as National Interstate). The outlook of these ratings is stable.

All companies are subsidiaries of AFG and headquartered in Cincinnati, OH, unless otherwise specified. (Please see below for a detailed listing of the P/C companies and ratings.)

The ratings of Great American reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM). Great American’s ratings are aided by risk-adjusted capitalization assessed at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR), with minimal volatility over time. Great American also has shown consistent operating performance on par with peers similarly assessed at the strong level, which is reflective of its profitable underwriting results that are supported by underwriting focus and their vast expertise within a diversified product portfolio and business profile through its multiple distribution platforms, in addition to significant investment income. An offsetting factor is a high dividend payout ratio to the parent company in alignment with the capital management strategies of the parent company.

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