Prism Assurance, the single parent captive of Apogee Enterprises, has had its financial strength rating of A- affirmed by AM Best.
According AM Best the outlook of this rating is stable, and reflects Prism’s strong capitalisation and solid operating performance.
The rating agency said that Prism’s strategic role as the captive insurance company of Apogee Enterprise and the parental support and financial flexibility available to Prism influenced the rating action.
It added that the company also benefits from its low overhead cost structure and extensive loss control programmes, which have resulted in a decrease in claims frequency and loss expenses across Apogee’s business units.
Partially offsetting rating factors include Prism’s degree of dependence on Apogee, along with the inherent volatility and challenges faced due to its narrow business and geographic scope.
However, AM Best stated that the ratings recognise the company’s balance sheet strength and conservative underwriting leverage measures.