Policyholders
trust Grange and Integrity with their insurance needs
830,000+
Our story began in 1935. Today, we offer customizable auto, home, life and business insurance products, serving customers across 13 states. Because we firmly believe our customers are best served through the trusted choice and counsel of independent agents, Grange and our affiliate, Integrity Insurance, sell exclusively through independent agents.
80+ years of trust
and protection
13 States
Our affiliation with Integrity Insurance is 14 years strong. Together, we have greater financial strength and market presence. And, we can deliver even more value to agents and policyholders. In 2015, Integrity hit an all-time high for policies and enjoyed its fourth straight year of profitability and growth.
grange and integrity,
stronger together
Independent agents are part of our DNA. They’re valued partners and the cornerstone of our business. It’s these relationships that set us apart and drive us to be the best at what we do.
building true partnership
Independent
Agents
proudly partner
with Grange and Integrity
5,000+
A
rating
from A.M. Best
(EXCELLENT)
With an “A” Excellent rating from A.M. Best spanning 50 years and $2 billion in assets, Grange has the strength and stability of a larger insurance carrier but with the local, personalized service of a small company.
financial strength
and stability
“The world is changing.
Consumers are changing.
We as an industry must be changing, too.”
A Message from the President & CEO
For more than 80 years, Grange has delivered on our promise to provide high quality protection to our policyholders while being a stable, predictable partner to our agents. Over the past year, we continued to deliver on that foundational promise but with an eye to the future, too.
The products, services and people we invest in year after year each play a critical role in our continued growth and success. In 2015, together with our agent partners, we generated an all-time high of $1.3 billion in premium and delivered an enterprise net combined ratio (NCOR) of 98.7%. In addition, we achieved record year-end surplus of $1.1 billion. With focus, we achieved a profitable year for the business despite our industry’s challenging economic and competitive environment.
Across our business segments — Personal Lines, Commercial Lines and Grange Life — we brought new, competitive products to market to fuel our agents’ business growth while meeting the full spectrum of insurance needs for policyholders. We continued to maximize our relationship with our affiliate, Integrity Insurance, to better serve our agent and customer base throughout our 13-state footprint.
We hit several big milestones in our work to deliver exceptional service and Ease of Doing Business®. We introduced a redesigned, mobile-friendly website that offers an improved experience for our policyholders. And we continue to enhance our quoting platform GAINWeb® for agents, which is consistently recognized as one of the easiest to use in the industry.
When considering the impact of technology on the broader marketplace, though, we have to acknowledge that the idea of high quality service is quickly evolving. Mobile device usage, web shopping and social media are reshaping service expectations and shopping preferences for both personal and business consumers. The world is changing. Consumers are changing. We as an industry must be changing, too.
In 2015, we challenged ourselves and our agents to evolve to address these market shifts head-on. The result is a clear vision for the future, one that will help us transform and modernize as a company.
In 2016, we’ll continue to make focused investments and grow areas of the business that hold the most untapped potential, especially in Commercial Lines. We’ll also begin to invest in technology that supports an easier way of doing business digitally for both our agents and policyholders.
I’m excited about what the future holds for Grange. Thank you to our more than 5,000 agent partners and 1,400 associates for being a part of the journey forward.
John Ammendola
President & Chief Executive Officer
financial Report
While 2015 was a challenging year in many ways, these results show that our portfolio of insurance products and financial discipline continue to deliver solid results. Our strong financial position provides
us with the ability to invest in our business and support the needs of our agents and policyholders into
the future.
GRANGE ENTERPRISE P&C
FINANCIAL REPORT*
Assets
Cash and Short Term Investments
Bonds (at amortized cost)
Stocks (at market value)
Real Estate (at cost less accumulated depreciation)
Floating Rate Bank Loans
Other Invested Assets
Securities Lending Reinvested Collateral Assets
Accrued Investment Income
Premiums in Course of Collection
Electronic Data Processing Equipment (at cost less accumulated depreciation)
Federal Income Tax Receivable
Net Deferred Tax Asset
Other Miscellaneous Assets
Total Assets
Liabilities and Policyholders’ Surplus
Unearned Premiums
Reserve for Losses
Reserve for Loss Adjustment Expense
General Expenses Payable
Payable for Securities Lending
Other Liabilities
Total Liabilities
Policyholders’ Surplus
Total Liabilities and Policyholders’ Surplus
Statement of Income and Surplus 2015
Premiums Earned
Losses and Loss Adjustment Expense Incurred
Other Underwriting Expenses Incurred
Net Underwriting Gain
Net Investment Gain
Other Income Less Other Expense
Dividends to Policyholders
Income Before Federal Income Taxes
Federal Income Taxes Incurred
Net Income
Other Surplus Changes
Change in Policyholders’ Surplus
Policyholders’ Surplus — January 1
Policyholders’ Surplus—December 31
$45,062,006
1,413,822,238
401,803,815
106,930,582
57,929,249
53,229,553
39,791,121
14,024,848
237,940,960
2,750,118
12,433,946
49,223,869
17,136,176
$2,452,078,481
$479,738,344
530,474,125
143,554,354
49,354,396
39,791,121
95,460,367
1,338,372,707
1,113,705,774
$2,452,078,481
$1,225,338,352
847,198,581
374,491,527
3,648,244
67,753,091
16,630,181
(3,298,756)
84,732,760
9,472,991
75,259,769
(53,809,278)
21,450,491
1,092,255,283
$1,113,705,774
GRANGE LIFE
FINANCIAL REPORT*
Assets
Cash and Short Term Investments
Bonds (at amortized cost)
Common Stocks (at equity)
Policy Loans
Securities Lending Reinvested Collateral Assets
Accrued Investment Income
Premiums Due and Uncollected
Amounts Due from Reinsurers
Net Deferred Tax Asset
Other Miscellaneous Assets
Total Assets
Liabilities, Capital and Surplus
Policy Reserves
Policy Claims Payable
General Expense Payable
Interest Maintenance Reserve
Securities Valuation Reserve
Payable for Securities Lending
Payable to parent, subsidiaries and affiliates
Funds held under coinsurance
Other Liabilities
Total Liabilities
Total Capital and Surplus
Total Liabilities, Capital and Surplus
Statement of Income, Capital and Surplus 2015
Premium Income
Net Investment Income
Benefits Paid to Policyholders
Operating Expenses
Loss Before Federal Income Taxes
Federal Income Taxes Incurred
Net from Operations after Dividends to Policyholders & Federal Income Taxes
Net Realized Capital Loss
Net Loss
Other Surplus Changes
Net Change in Capital and Surplus
Capital and Surplus - January 1
Capital and Surplus - December 31
$22,636,303
292,463,937
9,965,251
11,049,922
6,702,589
2,608,663
37,748,479
4,947,813
4,721,102
381,838
$393,225,897
$300,676,214
3,527,398
4,578,758
1,075,189
2,693,373
6,702,589
10,573,350
17,743,371
3,200,580
350,770,822
42,455,075
$393,225,897
$56,690,553
13,345,347
58,240,314
13,052,400
(1,256,814)
105,625
(1,362,439)
(200,558)
(1,562,997)
(12,112,183)
(13,675,180)
56,130,255
$42,455,075
* Balance Sheet — December 31, 2015
(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.