Ratings agency AM Best has affirmed the financial strength rating of A- (Excellent) of Prism Assurance, the captive insurance company of Apogee Enterprises, an architectural glass, metal and installation business for commercial buildings.
The outlook of the ratings is stable, and they reflect Prism's balance sheet strength as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
Furthermore, the ratings support Prism's strategic role as a captive of Apogee, and the parental support and financial flexibility available to Prism as a part of Apogee. Prism further benefits from its low overhead cost structure and extensive loss control programmes, which have decreased claims frequency and severity across Apogee business units.
One offsetting rating factor is Prism’s degree of dependence on Apogee as a captive insurer, which results in a concentrated focus on products and geographic distribution. However, AM Best said Prism’s ratings are supported by its balance sheet strength and consistent operating performance.