28 October 2013Law & regulation

Vermont based Prism receives rating affirmation

AM Best has affirmed the A- (Excellent) rating of Prism, the captive insurer of Apogee Enterprises, which designs, engineers and manufactures window systems for commercial and security buildings.

The rating agency said that its affirmation reflected Prism’s “strong capitalisation and solid operating performance” and the financial flexibility afforded Prism by its parent, Apogee Enterprises.

AM Best did however express concern regarding the captive’s “relatively large retained insurance limits and its limited market profile as a single parent captive”.

The rating agency said that Prism’s position could be improved by better underwriting, a strengthened capital position or a reduction in its exposures. It warned that an erosion of capital adequacy, losses and a deterioration in operating performance could all encourage a potential rating downgrade.