AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of a- of Prism Assurance, Ltd. (Prism) (Burlington, VT). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Prisms balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings indicate Prisms strategic role as a single parent captive insurance company of Apogee Enterprises, Inc. (Apogee) [NASDAQ: APOG] and reflect the parental support and financial flexibility afforded Prism as a part of Apogee. Prism is an integral tool for Apogee that increases the overall organizations risk management capability and awareness. Prism works cohesively with business units across the overall organization to reduce claims severity and frequency.
An offsetting rating factor is Prisms 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 U.S. construction market and the overall economy, which may lead to volatility in Prisms results. Despite these factors, Prisms ratings are supported by its balance sheet strength and operating performance.
AM 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 Bests Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
This press release relates to Credit Ratings that have been published on AM Bests website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Bests Credit Ratings. For information on the proper media use of Bests Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and AM Best Rating Action Press Releases.
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