Prism Assurance has had its financial strength rating of “A- (Excellent)” and its long-term credit rating of “a-” affirmed by A.M. Best.
The outlook of these credit ratings is stable.
Prism’s ratings reflect its balance sheet strength, which A.M. Best categorises as strongest, in addition to its adequate and consistent operating performance, limited business profile and appropriate enterprise risk management.
Also contributing to the ratings, is the parental support and financial flexibility that Prism gains from its strategic role as a captive insurance company of Apogee Enterprises.
The ratings are also reflective of the captives low overhead cost structure and extensive loss-control programmes, which have led to decreased claims frequency and severity across Apogee business units.
According to the ratings agency, an offsetting rating factor is Prism’s degree of dependence on Apogee as a captive insurer, which results in concentrated focus on products and geographic distribution.
