AM Best Revises Outlooks to Positive for Kentucky Growers Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- 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 Rating of “bbb+” of Kentucky Growers Insurance Company (KGIC) (Lexington, KY).

The ratings reflect KGIC’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The revised outlooks reflect KGIC’s strengthening risk-adjusted capitalization over the past five years, accompanied by favorable trends in key metrics of balance sheet strength such as policyholders’ surplus growth, underwriting leverage and liquidity measures.

Additionally, the ratings reflect KGIC’s adequate operating performance, driven by key metrics of total operating earnings (pre-tax return on revenue; return on surplus; operating ratio), each of which is solidly in line with the personal property industry composite five-year average. The ratings also reflect KGIC’s business profile, which is limited by its single-state concentration in Kentucky, which exposes results to frequent and severe weather-related events, as well as potential judicial, economic, competitive and regulatory challenges.

This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Christopher Jackson

Financial Analyst

+1 908 439 2200, ext. 5721

[email protected]



Kenneth Tappen

Senior Financial Analyst

+1 908 439 2200, ext. 5248

[email protected]



Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]



Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

[email protected]

Source: AM Best