|[November 16, 2012]
A.M. Best Affirms Ratings of Prism Assurance, Ltd.
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating of A-
(Excellent) and 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 inuring to 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 is 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
capital or a reduction in its overall net exposure. A.M. Best could
downgrade the ratings nd/or revise the outlook if the company's Best's
Capital Adequacy Ratio (BCAR) declines, operating performance
deteriorates or if 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. Key criteria
utilized include: "Risk Management and the Rating Process for Insurance
Companies"; "Understanding BCAR for Property/Casualty Insurers"; and
"Evaluating non-Insurance Ultimate Parents." Best's Credit Rating
Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS
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