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TMCNet:  A.M. Best Withdraws Ratings of Grange Mutual Fire Insurance Company

[February 13, 2014]

A.M. Best Withdraws Ratings of Grange Mutual Fire Insurance Company

OLDWICK, N.J. --(Business Wire)--

A.M. Best has affirmed the financial strength rating of B+ (Good) and issuer credit rating of "bbb-" of Grange Mutual Fire Insurance Company (Grange) (Troy, PA). The outlook for both ratings remains negative. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in the A.M. Best interactive rating process.

The rating affirmations reflect Grange's conservative underwriting leverage, long-term agency relationships, extensive knowledge of the operating territory and its ability to quickly implement operating changes due to its size and management structure.

The negative outlook reflects the trend of weakened underwriting results in recent years and the potential impact that future underwriting losses could have on the company's capitalization.

Management ecognizes the current competitive pressures within Grange's business segment, the challenges to minimize general operating expenses and its exposure to fire and weather-related losses while containing reinsurance costs. Over the past two years, Grange's underwriting losses were attributed mostly to higher than anticipated fire-related claims that affected its predominant property book of business, depressed rate levels due to competitive market conditions and elevated reinsurance costs.


The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.


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