COMMERCIAL LINES

a strong foundation for growth.

DEDICATED TO BEING A STABLE PARTNER

Our foundation-building process began to show results in 2016 as we saw consistent signs of improvement in profit and premium production in Commercial Lines throughout the year. Our bottom-line results showed significant improvement with a combined ratio of 98.1%, our best mark in six years.

From a top-line perspective, we saw consistent, positive improvement in new business production and total written premium, especially in the second half of the year. For the year we finished with a moderate decline in premium as a result of our profit improvement actions.

As last year closed out, we essentially completed our book repositioning and filled out our underwriting team, becoming a more committed and flexible partner to our agents. We continue to focus on providing the right kinds of products and support at the right time for our agents. We gave agents a clearly-defined Risk Appetite Guide, which highlights our consultative approach that allows our underwriters to work closely with agents on more complex risks.

In June we launched our new Cyber Coverage, a key addition to our product lineup. Our Garage marketing campaign in the second half of the year provided agents the right tools and information to effectively target that class of business for growth with Grange.

In 2017 we will continue to evolve our technology to increase responsiveness and service for our partners and their clients. We’ll begin offering different coverage options such as multi-tier pricing and we’ll improve our automated underwriting process to make it even easier for our agents to do business with us.

Mike Winner,

Commercial Lines President

“It’s an exciting time in Commercial Lines. Our connection to our agents is paying dividends. We’re poised to make a large leap forward in 2017.”

Mike Winner,

Commercial Lines President

“It’s an exciting time in Commercial Lines. Our connection to our agents is paying dividends. We’re poised to make a large leap forward in 2017.”

Personal LINES

focused on agents & customers.

COMMITTED TO OFFERING ONLY THE BEST PRODUCTS

During the last year we made significant upgrades to both our home and auto products with a focus on agents and customers. Whether it was new features, new coverages or targeted competitive rates, we offered our agents and their clients policies that could fit a variety of needs.

Our PinPoint Homeowners® product is now launched in five states with more to come in 2017. In addition to updating our Home policies, we also included enhancements in our Condo and Renters lines to better meet the needs of these two growing segments. The result was a more competitive product for our agents and our customers. Our new business results were ahead of expectations for each launch. We also focused on our PinPoint Auto® product. Based solely on agent feedback, we launched nearly 20 enhancements to the product – from simplifying the quoting process to new features and discounts.

Our enhancements weren’t limited to just products as we continued our focus on Ease of Doing Business® by improving the agent experience. We implemented Automatic Call Distribution in underwriting – a hybrid phone and online chat system – that improved our response rate and our quality scores.

We continued our strong performance in profitability, finishing with a combined operating ratio of 92.2%, the best result in a decade.

In 2017 we will continue our focus on our agency partners - on providing ease of doing business and continuing to build strong relationships. In addition, we know that keeping our products focused on the needs of customers will allow us to provide features, coverages, and service that are competitive in the market, and allow our agency partners to continue to serve their policyholders’ needs.

John North,

PERSONAL LINES PRESIDENT

“We made considerable progress in 2016 by being more customer-focused with our products. Agency feedback helped us enhance and deploy PinPoint Homeowners® in many of our states and new business results confirm we are on the right track.”

John North,

PERSONAL LINES PRESIDENT

“We made considerable progress in 2016 by being more customer-focused with our products. Agency feedback helped us enhance and deploy PinPoint Homeowners® in many of our states and new business results confirm we are on the right track.”

GRANGE LIFE

investing in the future.

fostering long-term financial strength & stability

Any company that successfully stands the test of time will have watershed years – when the organization refocuses its strategy and retools its processes to make the most of its resources and market conditions. Thus was 2016.

In addition to ongoing low interest rates, new regulations topped the list of challenges this year. These new regulations had a significant effect on the strongest tool in our risk management lineup: reinsurance.

With the new regulations, the existing reinsurance structure was no longer viable. As a result, we made updates that will serve us well in the long run, but involved a significant one-time investment. This investment had a major impact to our 2016 bottom line and is projected to have some minimal impact in 2017.

Even as we responded to industry-wide changes, Grange Life took stock of its overall strategic direction, recommitting to our core products and Grange’s traditional agency force. We also reviewed our product portfolio to better align with our new strategic direction and strengthen our long-term financial foundation. This involved striking a balance between profitability and competitiveness.

We made some tough choices in 2016 but feel confident that the actions we took were the right ones to strengthen our financial and strategic foundations for the future. As we look forward to 2017, there is one constant that will never change – our commitment to the success of our agent partners. We are here to listen and provide the service you need when you need it.

THERESA MASON,

GRANGE LIFE PRESIDENT

“As we launch into 2017, dedicated service will continue to be the mainstay of our agent relationships.”

THERESA MASON,

GRANGE LIFE PRESIDENT

“As we launch into 2017, dedicated service will continue to be the mainstay of our agent relationships.”

Grange Mutual Casualty Group which includes Grange Mutual Casualty Company, Grange Indemnity Insurance Company, Grange Insurance Company of Michigan, Grange Property & Casualty Company, Trustgard Insurance Company, Grange Life Insurance Company, Integrity Mutual Insurance Company and Integrity Property & Casualty Insurance Company. Coverages and discounts described herein may not be available in all states and policies are subject to underwriting guidelines. All life policies are underwritten by Grange Life Insurance Company, Columbus, Ohio, and are subject to underwriting approval. Please contact a local independent Grange agent for complete details on coverages and discounts.

Grange Mutual Casualty Group which includes Grange Mutual Casualty Company, Grange Indemnity Insurance Company, Grange Insurance Company of Michigan, Grange Property & Casualty Company, Trustgard Insurance Company, Grange Life Insurance Company, Integrity Mutual Insurance Company and Integrity Property & Casualty Insurance Company. Coverages and discounts described herein may not be available in all states and policies are subject to underwriting guidelines. All life policies are underwritten by Grange Life Insurance Company, Columbus, Ohio, and are subject to underwriting approval. Please contact a local independent Grange agent for complete details on coverages and discounts.

five straight years of increased new business premium

COMMERCIAL LINES

a strong foundation for growth.

DEDICATED TO BEING A STABLE PARTNER

Our foundation-building process began to show results in 2016 as we saw consistent signs of improvement in profit and premium production in Commercial Lines throughout the year. Our bottom-line results showed significant improvement with a combined ratio of 98.1%, our best mark in six years.

From a top-line perspective, we saw consistent, positive improvement in new business production and total written premium, especially in the second half of the year. For the year we finished with a moderate decline in premium as a result of our profit improvement actions.

As last year closed out, we essentially completed our book repositioning and filled out our underwriting team, becoming a more committed and flexible partner to our agents. We continue to focus on providing the right kinds of products and support at the right time for our agents. We gave agents a clearly-defined Risk Appetite Guide, which highlights our consultative approach that allows our underwriters to work closely with agents on more complex risks.

In June we launched our new Cyber Coverage, a key addition to our product lineup. Our Garage marketing campaign in the second half of the year provided agents the right tools and information to effectively target that class of business for growth with Grange.

In 2017 we will continue to evolve our technology to increase responsiveness and service for our partners and their clients. We’ll begin offering different coverage options such as multi-tier pricing and we’ll improve our automated underwriting process to make it even easier for our agents to do business with us.

Mike Winner,

Commercial Lines President

“It’s an exciting time in Commercial Lines. Our connection to our agents is paying dividends. We’re poised to make a large leap forward in 2017.”

Personal LINES

focused on agents & customers.

COMMITTED TO OFFERING ONLY THE BEST PRODUCTS

During the last year we made significant upgrades to both our home and auto products with a focus on agents and customers. Whether it was new features, new coverages or targeted competitive rates, we offered our agents and their clients policies that could fit a variety of needs.

Our PinPoint Homeowners® product is now launched in five states with more to come in 2017. In addition to updating our Home policies, we also included enhancements in our Condo and Renters lines to better meet the needs of these two growing segments. The result was a more competitive product for our agents and our customers. Our new business results were ahead of expectations for each launch. We also focused on our PinPoint Auto® product. Based solely on agent feedback, we launched nearly 20 enhancements to the product – from simplifying the quoting process to new features and discounts.

Our enhancements weren’t limited to just products as we continued our focus on Ease of Doing Business® by improving the agent experience. We implemented Automatic Call Distribution in underwriting – a hybrid phone and online chat system – that improved our response rate and our quality scores.

We continued our strong performance in profitability, finishing with a combined operating ratio of 92.2%, the best result in a decade.

In 2017 we will continue our focus on our agency partners - on providing ease of doing business and continuing to build strong relationships. In addition, we know that keeping our products focused on the needs of customers will allow us to provide features, coverages, and service that are competitive in the market, and allow our agency partners to continue to serve their policyholders’ needs.

John North,

PERSONAL LINES PRESIDENT

“We made considerable progress in 2016 by being more customer-focused with our products. Agency feedback helped us enhance and deploy PinPoint Homeowners® in many of our states and new business results confirm we are on the right track.”

GRANGE LIFE

investing in the future.

fostering long-term financial strength & stability

Any company that successfully stands the test of time will have watershed years – when the organization refocuses its strategy and retools its processes to make the most of its resources and market conditions. Thus was 2016.

In addition to ongoing low interest rates, new regulations topped the list of challenges this year. These new regulations had a significant effect on the strongest tool in our risk management lineup: reinsurance.

With the new regulations, the existing reinsurance structure was no longer viable. As a result, we made updates that will serve us well in the long run, but involved a significant one-time investment. This investment had a major impact to our 2016 bottom line and is projected to have some minimal impact in 2017.

Even as we responded to industry-wide changes, Grange Life took stock of its overall strategic direction, recommitting to our core products and Grange’s traditional agency force. We also reviewed our product portfolio to better align with our new strategic direction and strengthen our long-term financial foundation. This involved striking a balance between profitability and competitiveness.

We made some tough choices in 2016 but feel confident that the actions we took were the right ones to strengthen our financial and strategic foundations for the future. As we look forward to 2017, there is one constant that will never change – our commitment to the success of our agent partners. We are here to listen and provide the service you need when you need it.

THERESA MASON,

GRANGE LIFE PRESIDENT

“As we launch into 2017, dedicated service will continue to be the mainstay of our agent relationships.”

(800) 422-0550

Grange Insurance

671 S. High Street

Columbus, OH 43206

Grange Mutual Casualty Group which includes Grange Mutual Casualty Company, Grange Indemnity Insurance Company, Grange Insurance Company of Michigan, Grange Property & Casualty Company, Trustgard Insurance Company, Grange Life Insurance Company, Integrity Mutual Insurance Company and Integrity Property & Casualty Insurance Company. Coverages and discounts described herein may not be available in all states and policies are subject to underwriting guidelines. All life policies are underwritten by Grange Life Insurance Company, Columbus, Ohio, and are subject to underwriting approval. Please contact a local independent Grange agent for complete details on coverages and discounts.

COMMERCIAL LINES

COMMERCIAL LINES

a strong foundation for growth.

DEDICATED TO BEING A STABLE PARTNER

Our foundation-building process began to show results in 2016 as we saw consistent signs of improvement in profit and premium production in Commercial Lines throughout the year. Our bottom-line results showed significant improvement with a combined ratio of 98.1%, our best mark in six years.

From a top-line perspective, we saw consistent, positive improvement in new business production and total written premium, especially in the second half of the year. For the year we finished with a moderate decline in premium as a result of our profit improvement actions.

As last year closed out, we essentially completed our book repositioning and filled out our underwriting team, becoming a more committed and flexible partner to our agents. We continue to focus on providing the right kinds of products and support at the right time for our agents. We gave agents a clearly-defined Risk Appetite Guide, which highlights our consultative approach that allows our underwriters to work closely with agents on more complex risks.

In June we launched our new Cyber Coverage, a key addition to our product lineup. Our Garage marketing campaign in the second half of the year provided agents the right tools and information to effectively target that class of business for growth with Grange.

In 2017 we will continue to evolve our technology to increase responsiveness and service for our partners and their clients. We’ll begin offering different coverage options such as multi-tier pricing and we’ll improve our automated underwriting process to make it even easier for our agents to do business with us.

a strong foundation for growth.

DEDICATED TO BEING A STABLE PARTNER

Our foundation-building process began to show results in 2016 as we saw consistent signs of improvement in profit and premium production in Commercial Lines throughout the year. Our bottom-line results showed significant improvement with a combined ratio of 98.1%, our best mark in six years.

From a top-line perspective, we saw consistent, positive improvement in new business production and total written premium, especially in the second half of the year. For the year we finished with a moderate decline in premium as a result of our profit improvement actions.

As last year closed out, we essentially completed our book repositioning and filled out our underwriting team, becoming a more committed and flexible partner to our agents. We continue to focus on providing the right kinds of products and support at the right time for our agents. We gave agents a clearly-defined Risk Appetite Guide, which highlights our consultative approach that allows our underwriters to work closely with agents on more complex risks.

In June we launched our new Cyber Coverage, a key addition to our product lineup. Our Garage marketing campaign in the second half of the year provided agents the right tools and information to effectively target that class of business for growth with Grange.

In 2017 we will continue to evolve our technology to increase responsiveness and service for our partners and their clients. We’ll begin offering different coverage options such as multi-tier pricing and we’ll improve our automated underwriting process to make it even easier for our agents to do business with us.

Personal LINES

Personal LINES

focused on agents & customers.

COMMITTED TO OFFERING ONLY THE BEST PRODUCTS

During the last year we made significant upgrades to both our home and auto products with a focus on agents and customers. Whether it was new features, new coverages or targeted competitive rates, we offered our agents and their clients policies that could fit a variety of needs.

Our PinPoint Homeowners® product is now launched in five states with more to come in 2017. In addition to updating our Home policies, we also included enhancements in our Condo and Renters lines to better meet the needs of these two growing segments. The result was a more competitive product for our agents and our customers. Our new business results were ahead of expectations for each launch. We also focused on our PinPoint Auto® product. Based solely on agent feedback, we launched nearly 20 enhancements to the product – from simplifying the quoting process to new features and discounts.

Our enhancements weren’t limited to just products as we continued our focus on Ease of Doing Business® by improving the agent experience. We implemented Automatic Call Distribution in underwriting – a hybrid phone and online chat system – that improved our response rate and our quality scores.

We continued our strong performance in profitability, finishing with a combined operating ratio of 92.2%, the best result in a decade.

In 2017 we will continue our focus on our agency partners - on providing ease of doing business and continuing to build strong relationships. In addition, we know that keeping our products focused on the needs of customers will allow us to provide features, coverages, and service that are competitive in the market, and allow our agency partners to continue to serve their policyholders’ needs.

focused on agents & customers.

COMMITTED TO OFFERING ONLY THE BEST PRODUCTS

During the last year we made significant upgrades to both our home and auto products with a focus on agents and customers. Whether it was new features, new coverages or targeted competitive rates, we offered our agents and their clients policies that could fit a variety of needs.

Our PinPoint Homeowners® product is now launched in five states with more to come in 2017. In addition to updating our Home policies, we also included enhancements in our Condo and Renters lines to better meet the needs of these two growing segments. The result was a more competitive product for our agents and our customers. Our new business results were ahead of expectations for each launch. We also focused on our PinPoint Auto® product. Based solely on agent feedback, we launched nearly 20 enhancements to the product – from simplifying the quoting process to new features and discounts.

Our enhancements weren’t limited to just products as we continued our focus on Ease of Doing Business® by improving the agent experience. We implemented Automatic Call Distribution in underwriting – a hybrid phone and online chat system – that improved our response rate and our quality scores.

We continued our strong performance in profitability, finishing with a combined operating ratio of 92.2%, the best result in a decade.

In 2017 we will continue our focus on our agency partners - on providing ease of doing business and continuing to build strong relationships. In addition, we know that keeping our products focused on the needs of customers will allow us to provide features, coverages, and service that are competitive in the market, and allow our agency partners to continue to serve their policyholders’ needs.

GRANGE LIFE

GRANGE LIFE

investing in the future.

fostering long-term financial strength & stability

Any company that successfully stands the test of time will have watershed years – when the organization refocuses its strategy and retools its processes to make the most of its resources and market conditions. Thus was 2016.

In addition to ongoing low interest rates, new regulations topped the list of challenges this year. These new regulations had a significant effect on the strongest tool in our risk management lineup: reinsurance.

With the new regulations, the existing reinsurance structure was no longer viable. As a result, we made updates that will serve us well in the long run, but involved a significant one-time investment. This investment had a major impact to our 2016 bottom line and is projected to have some minimal impact in 2017.

Even as we responded to industry-wide changes, Grange Life took stock of its overall strategic direction, recommitting to our core products and Grange’s traditional agency force. We also reviewed our product portfolio to better align with our new strategic direction and strengthen our long-term financial foundation. This involved striking a balance between profitability and competitiveness.

We made some tough choices in 2016 but feel confident that the actions we took were the right ones to strengthen our financial and strategic foundations for the future. As we look forward to 2017, there is one constant that will never change – our commitment to the success of our agent partners. We are here to listen and provide the service you need when you need it.

investing in the future.

fostering long-term financial strength & stability

Any company that successfully stands the test of time will have watershed years – when the organization refocuses its strategy and retools its processes to make the most of its resources and market conditions. Thus was 2016.

In addition to ongoing low interest rates, new regulations topped the list of challenges this year. These new regulations had a significant effect on the strongest tool in our risk management lineup: reinsurance.

With the new regulations, the existing reinsurance structure was no longer viable. As a result, we made updates that will serve us well in the long run, but involved a significant one-time investment. This investment had a major impact to our 2016 bottom line and is projected to have some minimal impact in 2017.

Even as we responded to industry-wide changes, Grange Life took stock of its overall strategic direction, recommitting to our core products and Grange’s traditional agency force. We also reviewed our product portfolio to better align with our new strategic direction and strengthen our long-term financial foundation. This involved striking a balance between profitability and competitiveness.

We made some tough choices in 2016 but feel confident that the actions we took were the right ones to strengthen our financial and strategic foundations for the future. As we look forward to 2017, there is one constant that will never change – our commitment to the success of our agent partners. We are here to listen and provide the service you need when you need it.