OLDWICK, N.J.--()--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 fully reinsured subsidiary, Granwest Property & Casualty. Both companies are domiciled in Seattle, WA and are collectively known as Grange Insurance Group (Grange).

The Credit Ratings (ratings) reflect Granges 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 (ERM).

The positive outlooks reflect improvement in Granges total operating performance whereby it has generated pre-tax operating income every year since 2021, and 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. 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. The limited business profile reflects geographic concentrations in two states, with Grange focused on personal lines coverage, also influenced by challenges within the portfolio that have led to consistent underwriting losses. AM Best views Granges ERM program as appropriate, which includes a regular review of mitigation strategies for top risks and stress testing.

This press release relates to Credit Ratings that have been published on AM Bests 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 Bests 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 Bests Credit Ratings, Bests Performance Assessments, Bests Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Bests Ratings & Assessments.

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