AM Best has upgraded the Financial Strength Rating to A+ (Superior) from A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “aa-” from “a+” for both members of the PURE Group of Insurance Companies (PURE Group): Privilege Underwriters Reciprocal Exchange (PURE) and PURE Insurance Company (PIC). PIC and PURE Risk Management LLC, which serves as attorney-in-fact for PURE, are wholly owned subsidiaries of Privilege Underwriters, Inc. The outlook of these Credit Ratings (ratings) has been revised to stable from positive. PURE and PIC are domiciled in Fort Lauderdale, FL.
The ratings reflect PURE Group’s 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.
The rating actions 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. The recent execution of an unconditional keep-well agreement between TMNF and PURE in addition to the recapitalization of PURE by TMNF were the key factors that led to these positive rating actions. PURE Group aligns 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.
As a part of recapitalization plan, the pooling agreement between PURE and PIC will terminate at the end of 2021. It is AM Best’s expectation that TMNF will continue to support PURE as it looks to wind down PIC. AM Best will monitor these developments closely and will adjust the ratings accordingly, if need be. The stable outlooks reflect AM Best’s expectation that the group’s rating fundamentals will remain unchanged over the short to medium term.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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