A.M. Best has affirmed the financial strength of “A (Excellent)” and issuer credit rating of “a-“ of Prism Assurance. The outlook for both ratings is stable.
The rating reflects a solid recent performance of both Prism and its parent company, Apogee Enterprises. Apogee Enterprises designs and manufactures window systems for commercial and security buildings.
Apogee has experienced a period of renewed growth in recent years after a variable performance over the last decade, and its captive has benefited from this.
However, the positive rating of Prism Assurance is slightly held back by the insurer's limited profile, owing to its single parent status. It also bears a relatively large liability on its retained insurance limits. However, the firm benefits from large capital reserves and enjoys substantial financial flexibility as part of Apogee.
The rating is open to improvement if there is significant progress in underwriting performance or an increase in capital. A reduction of net exposure could also positively affect the rating. A.M. Best could revise the outlook if its Capital Adequacy Ratio declines or if performance deteriorates. The rating could also be affected by the depletion of capital through insured losses.
