AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Vermont-based captive Prism Assurance. The outlook of these credit ratings (ratings) is stable.
Prism is a single-parent captive insurance company of the US-based design and construction company Apogee. AM Best says “the business profile is limited as the captive provides very specific lines of coverage to Apogee, although the captive’s risks do have some geographical diversification, due to the scope of its parent’s operations.”
AM Best has assessed Prism’s balance sheet strength as very strong and it’s supported by risk-adjusted capitalisation “at the strongest level, as measured by AM Best’s capital adequacy ratio. Prism also has strong liquidity and its afforded financial flexibility and support from its parent company, Apogee Enterprises.
The company’s operating performance reflects consistent annual net profits and a low-cost expense structure that has led to an underwriting expense ratio — that is a fraction of its peers’ average in comparison. The company’s operating income is the result of a steady flow of royalty and investment income, which offsets any volatility in underwriting and allows for healthy profits year-on-year.
The company is part of Apogee’s ERM programme, as a result, Prism displays excellent risk identification and mitigation processes, says AM Best.
As a captive, Prism is an integral component of Apogee’s overall organisation’s risk management capability and awareness, it adds.
Prism works with business units across the organisation to reduce claims severity and frequency.
