|[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 Concurrently, A.M. Best has withdrawn the ratings as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
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.
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