AM Best Affirms Credit Ratings of Privilege Underwriters Reciprocal Exchange and PURE Specialty Exchange
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a+”
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AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a+” (Excellent) of Privilege Underwriters Reciprocal Exchange (Fort Lauderdale, FL) and PURE Specialty Exchange (Scottsdale, AZ). The outlook of these Credit Ratings (ratings) is stable. These insurance entities comprise PURE Insurance Group.
The ratings reflect PURE Insurance Group’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The strong balance sheet assessment reflects PURE Insurance Group’s strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which AM Best expects to remain in the strong category in the near term. Additional positive assessment factors include financial flexibility, high-quality assets, and a conservative investment portfolio. Partially offsetting these positive factors are the group’s capital structure, which includes surplus notes from its parent, and its reliance on reinsurance.
The ratings also consider the group’s marginal operating performance, which has shown improvement in recent periods, and its ERM, which AM Best assesses as appropriate. The formal ERM program is appropriate for the size and scope of the organization and is supported further through synergies across the Tokio Marine organization.
Finally, the ratings also consider implicit and explicit support provided by Tokio Marine Holdings, Inc. (TMHD), and its lead insurance operating company, Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF). TMNF’s support of PURE Insurance Group aligns with TMHD’s strategy of expanding its international business through acquisition in developed and emerging markets, in addition to providing diversification of revenues and customer segments.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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