AM Best Revises Outlooks to Stable for Members of Grange Insurance Pool

AM Best has revised the outlooks to stable from positive and affirmed the Financial Strength Rating (FSR) of A (Excellent) and a Long-Term Issuer Credit Ratings (Long-Term ICR) of "a+" (Excellent) of Grange Insurance Company and its pooled subsidiaries and reinsured affiliates. All companies are domiciled in Columbus, OH, and collectively are called Grange. (See below for a detailed listing of the companies.)

These Credit Rating (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 stable are based on deterioration in operating performance, driven by weakening in the group's underwriting results mainly due to an increase in loss severity and current economic challenges, including inflation. The inflationary economy continues to be a challenge for Grange in 2022 and has impacted the underwriting results of its commercial and personal lines.

Grange maintains the strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). Grange provides personal and commercial lines products throughout the Midwest and Southeast United States and has an established position as one of the largest auto writers in Ohio. 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+ "(Excellent) have been affirmed, with the outlooks revised to stable from positive, for the following members of the Grange Insurance Pool:

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

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 Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

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.

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