AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Ratings of “bbb+” (Good) of Grange Insurance Association and its reinsured subsidiary Granwest Property & Casualty.
Both companies are domiciled in Seattle, Washington, and are collectively known as Grange Insurance Group.
The Credit Ratings (ratings) reflect Grange’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
The positive outlooks reflect improvement in Grange’s total operating performance, in which the company has generated pre-tax operating income every year from 2021 through year-end 2024.
“While underwriting losses remain, the reported combined ratio has been within a relatively narrow band over the last few years as corrective actions have reduced severity compared to older years,” AM Best stated. “This has led to net investment income more consistently offsetting volatility and generating pre-tax and total returns, which have started to align closer to adequate composite averages.”
The balance sheet strength assessment reflects the expectation that Grange will continue to maintain very strong overall balance sheet strength, inclusive of favorable loss reserve development trends and the strongest level of risk-adjusted capitalization, according to AM Best.
Topics Trends AM Best Washington
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