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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 14, 2014 03:06 PM (EST)
A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of Prism Assurance, Ltd. (Prism) (Burlington, VT). The outlook for both ratings is stable.
The ratings reflect Prism's strong capitalization and solid operating performance. Also supporting the ratings is Prism's strategic role as the captive insurance company of Apogee Enterprises, Inc. (Apogee), 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. Nonetheless, the ratings recognize the company's balance sheet strength and conservative underwriting leverage measures.
A.M. Best could upgrade Prism's ratings and/or revise its outlook if there is significant improvement in its underwriting performance and capitalization 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 (BCAR) declines, operating performance deteriorates or insured losses deplete capital.
A.M. 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.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.