AM Best

AM Best Upgrades Issuer Credit Rating of PURE Specialty Exchange


Thomas Keelan
Financial Analyst
+1 908 882 1925

Edin Imsirovic
+1 908 882 1903
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318


OLDWICK - JUNE 18, 2024 04:01 PM (EDT)
AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a+” (Excellent) from “a” (Excellent) and affirmed the Financial Strength Rating (FSR) of A (Excellent) of PURE Specialty Exchange (Scottsdale, AZ). Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of Privilege Underwriters Reciprocal Exchange (Fort Lauderdale, FL). 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.

The strong balance sheet assessment reflects PURE Insurance Group’s very strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and AM Best expects the group’s risk-adjusted capitalization to remain in the very strong category. Additional positive assessment factors include financial flexibility, high quality assets, and a conservative investment portfolio. Partially offsetting these positive factors are the group’s exposure to catastrophe losses, its reliance on reinsurance, and a capital structure that is comprised mostly of surplus notes.

Finally, the ratings consider implicit and explicit support provided by Tokio Marine Holdings, Inc. (TMHD), and its lead insurance operating company, Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF). TMNF’s support of PURE Insurance Group aligns with TMHD’s strategy of expanding its international business through acquisition in developed and emerging markets, in addition to providing diversification of revenues and customer segments.

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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