OLDWICK, N.J. — (BUSINESS WIRE) — #insurance—AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Prism Assurance, Ltd. (Prism) (Burlington, VT). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Prism’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings indicate Prism’s strategic role as a single parent captive insurance company of Apogee Enterprises, Inc. (Apogee) [NASDAQ: APOG] and reflect the inherent benefits of parental support and financial flexibility afforded to Prism as a part of Apogee. The company’s operating performance is largely the result of a steady flow of royalty and investment income, which adequately offsets any volatility in underwriting shortfalls and allows for healthy profits each year.
Since the parent is one of the largest architectural design and construction companies in the United States, the captive’s risks have a level of geographical diversification. However, the business profile is limited as the captive provides very specific lines of coverage to Apogee. As a captive, Prism is an integral tool for Apogee that increases the overall organization’s risk management capability and awareness. Prism works cohesively with business units across the overall organization to reduce claims severity and frequency. Additionally, the company benefits from an ERM program that is interwoven with that of the parent, resulting in excellent risk identification and mitigation processes.
AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
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.
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