AM Best Affirms Credit Ratings of Privilege Underwriters Reciprocal Exchange and PURE Specialty Exchange
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a+” (Excellent) of Privilege Underwriters Reciprocal Exchange (Fort Lauderdale, FL) and PURE Specialty Exchange (Scottsdale, AZ). The outlook of these Credit Ratings (ratings) is stable. These insurance entities comprise PURE Insurance Group.
The ratings reflect PURE Insurance Group’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The strong balance sheet assessment reflects PURE Insurance Group’s strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which AM Best expects to remain in the strong category in the near term. Additional positive assessment factors include financial flexibility, high-quality assets, and a conservative investment portfolio. Partially offsetting these positive factors are the group’s capital structure, which includes surplus notes from its parent, and its reliance on reinsurance.
