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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 03, 2019 09:45 AM (EDT)
AM Best has placed under review with positive implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “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. (PUI). PURE and PIC are domiciled in Fort Lauderdale, FL.
The Credit Rating (rating) actions follow the announcement that Tokio Marine Holdings Inc. (TMH) has entered into a definitive agreement to acquire 100% of PUI’s outstanding shares. The transaction is subject to customary closing conditions, including regulatory approvals in the United States and Japan, and is expected to close in the first quarter of 2020.
The under review with positive implications status reflects the need for AM Best to further and fully assess the financial and operational impacts of the acquisition. In addition, the positive implications considers the successful track record that TMH has established with similar transactions in the past and the benefits of operational synergies with other subsidiary companies. AM Best will continue to hold discussions with PURE Group’s management and monitor the balance sheet strength, operating performance, business profile and enterprise risk management through the close of the transaction.
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 Understanding 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.
AM Best is a global rating agency and information provider with an exclusive focus on the insurance industry.