A.M. Best Revises Issuer Credit Rating Outlook to Positive for Grinnell Mutual Reinsurance Company and Its Subsidiary

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of “a” of Grinnell Mutual Reinsurance Company and its subsidiary Grinnell Select Insurance Company (both are domiciled in Grinnell, IA), which are collectively referred to as Grinnell Mutual Group (Grinnell). The outlook of the FSR remains stable.

The ratings reflect Grinnell’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management. The positive outlook reflects the group’s improved operating performance in recent years due to significant improvement in underwriting practices on the assumed book of business. Strong underwriting income and steady net investment income has contributed to the healthy surplus growth of the past five years. However, Grinnell’s policyholder surplus remains susceptible to natural catastrophes due to geographic concentration within its property lines business.

Grinnell maintains a well-established market position as a leading reinsurer of farm mutual insurers in the Midwest region of the United States. The relationship with the farm mutual insurers creates a strategic advantage for Grinnell, allowing it to penetrate the small towns and rural areas in its operating territory.

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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A.M. Best

Colette Fearon, +1-908-439-2200, ext. 5548

Financial Analyst

colette.fearon@ambest.com

or

Janet Hernandez, +1-908-439-2200, ext. 5767

Senior Financial Analyst

janet.hernandez@ambest.com

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Christopher Sharkey, +1-908-439-2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

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Jim Peavy, +1-908-439-2200, ext. 5644

Director, Public Relations

james.peavy@ambest.com

Source: A.M. Best