Apogee's captive Prism gets Excellent rating
Ratings agency AM Best has affirmed the financial strength rating of A- (Excellent) of Prism Assurance, the Vermont-based single parent captive of commercial metals and glass company Apogee Enterprises.
Prism's ratings reflect its balance sheet strength, which AM Best categorises as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings also reflect the parental support and financial flexibility afforded Prism as a part of Apogee.
AM Best described Prism as an integral tool for Apogee that increases the overall organisation’s risk management capability and awareness. Prism works cohesively with business units across the overall organisation to reduce claims severity and frequency.
An 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. Additionally, Apogee is dependent on the US construction market and the overall economy, which may lead to volatility in Prism’s results. Despite these factors, Prism’s ratings are supported by its balance sheet strength and operating performance.