A.M. Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” of Prism Assurance, the single parent captive insurer of Apogee Enterprises.
The outlook of the credit ratings of the Vermont-based captive are stable.
The ratings are reflective of Prism’s “very strong” balance sheet, it's adequate limited business profile and its appropriate enterprise risk management.
The ratings are also a product of the parental support and financial flexibility afforded to Prism as part of Apogee.
A.M. Best described Prism as “integral tool or Apogee that increases the overall organization’s risk management capability and awareness” and “works cohesively with business units across the overall organisation to reduce claims severity and frequency”.
Prism’s degree of dependence on Apogee as captive, which results in a concentrated focus on products and geographic distribution, is a factor offsetting the ratings.
Another offsetting factor is Apogee’s dependence on the US construction market and overall economy, which A.M. Best suggested “may lead to volatility in Prism’s results”.
The ratings agency concluded: “Despite these factors, Prism’s ratings are supported by its balance sheet strength and operating performance.”
