Press Release|Insurance

KBRA Places Rating of Granular Insurance Company on Watch Developing Following the Announcement of Transaction with Elevance Health, Inc.

11 Feb 2025   |   New York

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KBRA places on Watch Developing the A- insurance financial strength rating (IFSR) of Granular Insurance Company (Granular).

The Watch Developing status reflects uncertainty with respect to the near-to-medium term impact of the pending acquisition of Granular on its financial position, projected results, risk profile and business strategy given the announcement that Elevance Health, Inc. [NYSE: ELV] will be acquiring Granular from its parent company, Verily, a division of Alphabet [NYSE: GOOGL]. Elevance Health, Inc. (Elevance) is a health insurance provider that offers health plans, pharmacy services, and specialty insurance. It is the largest for-profit managed health care company in the Blue Cross Blue Shield Association, employing nearly 102,000 associates. Through its family of companies, it supports health at every life stage, offering health plans and clinical, behavioral, pharmacy, and complex-care solutions that promote whole health. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint and Carelon brand names. The company was formerly known as Anthem Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance was incorporated in 2001 and is headquartered in Indianapolis, Indiana. The transaction is subject to regulatory approvals and is expected to close in the second half of 2025.

Granular is an accident and health insurer focused on an innovative precision risk-based approach to the Employer Stop Loss market, a segment of commercial insurance that protects self-funded employers from unexpected and large employee health benefit claims by reimbursing employers for claims above a defined amount.

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Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

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Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1007944

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