AM Best Assigns Ratings to Grinnell Compass, Inc.; Affirms Ratings of Grinnell Mutual Reinsurance Company and Its Subsidiary
- February 14, 2023 09:01 AM (EST)
Oldwick //BestWire// - AM Best has assigned a Financial Strength Rating (FSR) of A (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” (Excellent) to Grinnell Compass, Inc. (Compass). The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) of Grinnell Mutual Reinsurance Company and its subsidiary, Grinnell Select Insurance Company. The outlook of these ratings is stable. The aforementioned companies are domiciled in Grinnell, IA, and collectively referred to as Grinnell Mutual Group (Grinnell).
The ratings reflect Grinnell’s balance sheet strength, which AM Best assesses as strongest,as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The rating assignments for Compass reflect its addition to the group’s intercompany quota share reinsurance agreement. Compass was formed in 2015 to provide a new personal auto program that uses a multivariate rating platform. The company began writing business in 2019 and is currently offering coverage in 12 states through a network of independent agents.
Grinnell’s balance sheet strength is supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), its conservative investment portfolio, favorable loss reserving trends and solid liquidity ratios that are enhanced by positive cash flows. The group has reported operating ratios that are in line with composite averages over the last five years; however, in more recent years these ratios have shown some volatility resulting from frequent and severe weather-related events. Grinnell has undertaken initiatives to strengthen underwriting guidelines and improve profitability. The group offers a variety of business lines, including personal, commercial and assumed reinsurance, which is geographically concentrated in the Midwest.
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 Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.