Demotech Affirms the Financial Stability Rating® Assigned to Gem State Insurance Company


Columbus, Ohio, November 7, 2017: The Financial Stability Rating® (FSR) of A” (A Double-Prime), Unsurpassed, assigned to Gem State Insurance Company has been affirmed by Demotech, Inc.  This level of FSR is assigned to insurers who possess unsurpassed financial stability related to maintaining positive surplus as regards policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves (L&LAE) and realistic pricing.

FSRs summarize Demotech’s opinion of the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle.  FSRs utilize statutory financial data based on insurance accounting principles prescribed or permitted by the National Association of Insurance Commissioners (NAIC).  Since 1989, FSRs of A or better have been accepted by the major participants in the secondary mortgage marketplace.

About Gem State Insurance Company

Gem State Insurance Company was originally organized by the Idaho State Grange in 1910 to provide property insurance to the members of that organization. The name at that time was Grange Mutual Cooperative Fire Insurance Company, but the name was changed to the current name recently to reflect expansion into other insurance areas. Insurance coverage for eligible property is not restricted to Grange members.

The company operates only in the state of Idaho, marketing homeowners, mobile homeowners, rental dwelling, and farmowners insurance coverages through independent insurance agencies throughout the state. The company’s small size and concentrated operating territory allows high quality service to policyholders at a very competitive price, with rapid turn around time on policy service and claims.

About Demotech, Inc.

Demotech, Inc. is a financial analysis firm specializing in evaluating the financial stability of regional and specialty insurers.  Since 1985, Demotech has served the insurance industry by assigning accurate, reliable and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurers and Title underwriters.  FSRs are a leading indicator of financial stability, providing an objective baseline of the future solvency of an insurer.  Demotech’s philosophy is to review and evaluate insurers based on their area of focus and execution of their business model rather than solely on financial size.  Visit www.demotech.com for more information.

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