Outlooks to Revised to Positive for Ohio’s Grange Insurance, Subsidiaries

May 7, 2021

AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A (Excellent) and a Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of Columbus, Ohio-based Grange Insurance Co. and its pooled subsidiaries and reinsured affiliates.

Grange provides personal and commercial lines products throughout the Midwest and Southeast and has an established position as one of the largest auto writers in Ohio.

These ratings reflect Grange’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The outlook revisions to positive are based on AM Best’s expectation of sustained improvement in Grange’s underwriting and operating performance, despite modest volatility from weather-related events, while maintaining the strongest level risk adjusted capital, as measured by Best’s Capital Adequacy Ratio (BCAR).

Grange’s strategic profitability initiatives have resulted in underwriting performance metrics that outperformed its peer group in recent years and, combined with growing investment income, has resulted in continued organic surplus growth.

The ERM program includes a formal risk reporting process, established tolerance levels and risk limits, and stress testing for significant risks.

The FSR of A (Excellent) and the Long-Term ICRs of “a+ ” have been affirmed with the outlooks revised to positive from stable, for the following members of the Grange Insurance Pool:

  • Grange Insurance Co.
  • Grange Indemnity Insurance Co.
  • Grange Insurance Co. of Michigan
  • Grange Property & Casualty Insurance Co.
  • Integrity Insurance Co.
  • Integrity Property & Casualty Insurance Co.
  • Integrity Select Insurance Co.
  • Trustgard Insurance Co.

Source: AM Best

Topics Trends Ohio

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