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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 31, 2017 11:57 AM (EST)
A.M. Best has removed from under review with positive implications and upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” from “a-” of Granite Re, Inc. (Granite) (Oklahoma City, OK). The outlook assigned to the FSR is stable, while the outlook assigned to the Long-Term ICR is positive.
The Credit Rating (rating) actions follow Federated Mutual Insurance Company’s (Federated) completed acquisition of Granite. The transaction closed on Jan. 3, 2017. The upgrades reflect A.M. Best’s view that Granite benefits from its new position as a subsidiary of Federated, a much larger, diversified insurance company. Federated is to provide reinsurance support, operating efficiencies and financial flexibility to Granite. Further, Federated maintains a quality enterprise risk management program and favorable business profile. This acquisition better positions Federated to partner with commercial contractors on surety bonding needs.
The positive outlook on the Long-Term ICR reflects A.M. Best’s expectation that Granite will continue to be integrated further into the Federated organization in the near term.
Granite currently benefits from its supportive level of risk-adjusted capital, historically sound operating performance and established presence operating within the small- to medium-size contract surety marketplace. Somewhat offsetting these positive rating factors are the historically higher-than-average expense ratios and limited business profile as a mono-line company.
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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.