A.M. Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings to “a” from “a-” for both members of the PURE Group of Insurance Companies (PURE). The members, both domiciled in Fort Lauderdale, Fla., are Privilege Underwriters Reciprocal Exchange and PURE Insurance Co.
At the same time, the ratings agency revised the outlook of these ratings to stable from positive. The stable outlooks reflect A.M. Best’s expectation that the group’s rating fundamentals will remain unchanged over the short to medium term.
The PURE Group meets the personal insurance needs of families with high net worth.
The assessments reflect PURE’s balance sheet strength, A.M. It is best categorized as very strong and at the same time operating as sufficient operational performance, neutral business profile and appropriate corporate risk management. “
According to A.M., the best of PURE’s bilateralism reflects the group’s unsupervised capital, as well as improvements to the policyholder’s reinsurance, as a result of the overpowering of the policy owner. The growth in 2018 was significantly affected by the accounting change approved by the Florida regulator. This allowed the deferred acquisition costs to be reduced by some of the unfulfilled attorneys fees due to the related party statutes.
Additional financial flexibility is provided by PURE’s contribution to the parent company and external sources and the subscriber contribution that is expected to continue as new business is generated and stored for several years. Partial balancing of these positive factors is a significant increase in group reinsurance disruptions and direct written premiums.
PURE has reported that in the recent years, large operating performance is better because of the net loss rates that can be compared positively with industry averages. While there is volatility due to weather conditions in the outcome, the basic work discipline has performed well, mainly due to disciplinary action and rate actions. He said he was the best.
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