News Release

GuideOne Contact: Sarah Buckley, APR
Assistant Vice President of Corporate
Communications & Marketing
Phone: (515) 267-2300
E-mail: Sarah Buckley

For Release: Immediately

GUIDEONE INSURANCE UPGRADED TO “A” EXCELLENT
BY A.M. BEST

Upgrade Comes After Track Record of Profitability and
All-Time High Policyholder Surplus 

WEST DES MOINES, Iowa – (May 27, 2010) – Today, GuideOne Insurance announced that its financial strength rating has been upgraded to “A” Excellent by A.M. Best Company, a leader in rating insurance companies’ financial strength. GuideOne had been rated “A-” for several years, and had a “positive outlook” on its rating since May 2008.  With this upgrade, GuideOne is joining an elite club, as nationally only 10.5 percent of property/casualty insurance companies hold a higher rating.

“This upgrade is a reflection of the hard work and dedication of GuideOne’s employees and agents, and we thank them,” said Jim Wallace, GuideOne Chairman, President and CEO. “We’ve created a 7-year track record of profitability and grown our policyholder surplus to an all-time high of $459 million. We’re proud to say we’re stronger today than ever before in our history, and we’re very pleased to offer that strength to our policyholders.”

In upgrading GuideOne, A.M. Best said: “The rating actions reflect GuideOne’s strong capitalization, favorable operating results, solid balance sheet and established market presence in its core niche market. The ratings further acknowledge the group’s experienced management team, conservative operating philosophy and sustainable competitive advantages due to its prominent position within its niche market, particularly in terms of pricing, claims adjusting and loss control. GuideOne’s positive attributes are derived from its disciplined underwriting approach, conservative investment strategy, long-standing relationships with its agents and strong franchise recognition among the religious community. The group’s strong reputation, along with its dedicated service capabilities, has enabled it to sustain strong market penetration and maintain high policyholder retention rates.”

The rating upgrade comes on the heels of a strong 2009 for GuideOne. Last year, the company had net income of $44.6 million, a combined ratio of 96.6 percent, and a return on equity of 10.4 percent.  2009 represented the sixth year in the last seven that GuideOne posted a combined ratio below 100 percent.

Founded in 1947 and headquartered in West Des Moines, Iowa, GuideOne Insurance is one of the nation’s largest church insurers, with nearly 43,000 church policyholders. GuideOne also insures private schools and colleges, as well as senior living communities. In 1999, the company created the GuideOne Center for Risk Management in order to help churches and faith-based organizations safeguard their ministries. This effort was expanded in 2008 with the launch of SafeChurch, the most comprehensive church risk management resource available. GuideOne’s personal lines products include auto and homeowners insurance. GuideOne is licensed to do business in all 50 states and markets its products and services through nearly 1,600 independent and career agents. The company carries an “A” Excellent rating from A.M. Best.