A.M. Best has affirmed the financial strength rating of “A-” (Excellent) and the issuer credit rating of “a-” of Prism Assurance.
According to A.M. Best, the ratings reflect Prism’s strong capitalisation and solid operating performance.
Also supporting the ratings is Prism’s strategic role as the captive insurance company of Apogee Enterprises, and the substantial financial flexibility available to Prism as part of Apogee.
Partially offsetting these positive rating factors are Prism’s relatively large retained insurance limits and its limited market profile as a single parent captive.
Despite this, the ratings recognise the company’s balance sheet strength and conservative underwriting leverage measures.
A.M. Best has stated that it could upgrade Prism’s ratings and/or revise its outlook if there is significant improvement in its underwriting performance and capitalisation or a reduction in its overall net exposure.
However, A.M. Best could downgrade the company’s ratings or revise the outlook if its Best’s Capital Adequacy Ratio declines, operating performance deteriorates or insured losses deplete capital.
