A.M. Best Awards Grinnell Mutual 'A' Rating
Future prospects look good
For the 18th consecutive year, Grinnell Mutual earned an “A” rating from A.M. Best, the premier rating organization for the insurance industry. The “A” rating, combined with a stable outlook for the future, applies to both Grinnell Mutual and its subsidiary, Grinnell Select Insurance (GSI).
“Grinnell Mutual’s ‘A’ rating is significant,” explained Chief Operating Officer Steve Crawford. “Other companies, including our reinsurers, look closely at our rating. It’s an indication of how well a company is doing.”
According to A.M. Best, “The rating reflects Grinnell Mutual’s excellent capitalization, strong historic operating results, focused operating strategy and well-established market position as a leading reinsurer of farm mutuals in the midwestern United States."
Maintaining last year’s “A” rating with a stable outlook is an achievement for Grinnell Mutual, in light of the current economy and 2008 storms.
“Ratings have slipped for some insurance companies as both their investments and surplus ratios have suffered under the credit crisis,” said Crawford. “We’re happy A.M. Best recognizes that our operation is well-positioned for the future. Grinnell Mutual has maintained a stable rating for many years now, and it shows that A.M. Best is confident that we will continue to thrive in the future.”
According to information from A.M. Best, “Grinnell Mutual’s current outlook is based on their operating strategy, excellent capitalization and aggressive management initiatives aimed at further strengthening operating performance.”
Over the years, Grinnell Mutual has used A.M. Best’s evaluation to strengthen its financial position.
“In the past, A.M. Best has reported that our risks were too concentrated in the Midwest. As a result, we looked to develop a larger writing territory to get a better spread of risk. Our successful expansion into Ohio and now into Pennsylvania is helping Grinnell Mutual achieve that stability,” said Crawford.
Grinnell Mutual is currently ranked as the 134th largest property/casualty company in the United States based on net premium.