AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of 'aa-' (Superior) of Privilege Underwriters Reciprocal Exchange (PURE).
At the same time, AM Best has downgraded the FSR to A- (Excellent) from A+ (Superior) and the Long-Term ICR to 'a-' (Excellent) from 'aa-' (Superior) of PURE Insurance Company (PIC). The outlook of these Credit Ratings (ratings) is stable. PURE and PIC are domiciled in Fort Lauderdale, FL.
The ratings of PURE reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings consider implicit and explicit support provided by the ultimate parent, Tokio Marine Holdings, Inc., its lead insurance operating company, Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF), and the affiliation between the U.S. subsidiaries of TMNF. PURE aligns with TMNF's strategy of expanding its international business through acquisition in developed and emerging markets, in addition to providing diversification of revenues and customer segments. Partially offsetting these positive factors is company's dependence on reinsurance and exposure to catastrophe events.
The ratings of PIC reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, very limited business profile and appropriate ERM. The negative rating actions reflect the fact that PIC is essentially in run-off as a pooling agreement between PURE and PIC was terminated in January 2022. It is AM Best's expectation that TMNF will continue to support PURE as it looks to wind down PIC. The rating actions on PIC have no impact on AM Best's view of PURE's financial strength, as evidenced by the rating affirmations of PURE.
This press release relates to Credit Ratings that have been published on AM Best's 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 Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.
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