Press Release|Insurance

KBRA Affirms Rating for Granular Insurance Company

12 Dec 2023   |   New York


KBRA affirms the A- Insurance Financial Strength Rating (IFSR) for Granular Insurance Company. The Outlook for the rating is Stable.

The rating reflects Granular’s good capitalization strategy, which includes access to additional capital, strong corporate governance, management team, and operational structure, focused and well-developed strategy, innovative product, Granular's parent's firm implicit and explicit commitment from Alphabet [NASDAQ: GOOGL], and well-established distribution relationships. The rating also reflects the substantial market opportunity for Granular’s product, as the Employer-Stop Loss (ESL) market is a large but static segment of the overall insurance sector. Balancing these strengths is the execution risk typically associated with a newer company, the competitive ESL marketplace, which has many well-established companies already operating in it, and the company’s exposure to key executive risk. These risks are partially offset by Verily’s extensive industry relationships, its demonstrated ability to replace senior management internally, and Granular’s continued efforts to build out its senior management team. Factors that could positively impact the rating include: improved risk-adjusted capitalization, organic surplus growth, materially exceeding business plan objectives provided to KBRA, and establishment of meaningful market share. Factors that could negatively impact the rating include: poor execution of its business plan provided to KBRA, notable decline in capitalization, indications of a lower level of support from its owners, loss of key business partners or distribution sources, and departure of key members of the management team.

To access rating and relevant documents, click here.

Click here to view the report.


Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

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

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1002795

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