AM Best has made some positive changes regarding Grange Insurance Association and its subsidiary, Granwest Property & Casualty. The organization has upgraded their outlook from stable to positive and has confirmed their Financial Strength Rating at B++ (Good) and Long-Term Issuer Credit Ratings at “bbb+” (Good). Both companies are based in Seattle, Washington, and are part of what is known as Grange Insurance Group.
This rating reflects Grange’s strong balance sheet, which AM Best describes as very strong. However, the company is still working on improving its operating performance and business profile. One bright spot is that Grange has reported pre-tax operating income every year from 2021 through the end of 2024.
While the company has faced some underwriting losses, it has managed to keep its combined ratio within a stable range in recent years. This stability is due to corrective measures that have reduced losses compared to earlier years. As a result, Grange’s net investment income has helped balance out any volatility, leading to better overall returns that are starting to meet industry averages.
AM Best also expects Grange to maintain its strong balance sheet. This includes positive trends in loss reserves and a robust level of risk-adjusted capitalization. Overall, the outlook for Grange Insurance Group appears to be bright, with improvements in their financial performance and stability.