A.M. Best Affirms Ratings of Prism Assurance, Ltd.

  A.M. Best Affirms Ratings of Prism Assurance, Ltd.

Business Wire

OLDWICK, N.J. -- November 16, 2012

A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and
issuer credit rating of “a-” of Prism Assurance, Ltd. (Prism) (Burlington,
VT). The outlook for both ratings is stable.

The ratings reflect Prism’s strong capitalization and solid operating
performance. Also inuring to the ratings is Prism’s strategic role as the
captive insurance company of Apogee Enterprises, Inc. (Apogee), and the
substantial financial flexibility available to Prism as part of Apogee.

Partially offsetting these positive rating factors is Prism’s relatively large
retained insurance limits and its limited market profile as a single parent
captive. Nonetheless, the ratings recognize the company’s balance sheet
strength and conservative underwriting leverage measures.

A.M. Best could upgrade Prism’s ratings and/or revise its outlook if there is
significant improvement in its underwriting performance and capital or a
reduction in its overall net exposure. A.M. Best could downgrade the ratings
and/or revise the outlook if the company’s Best’s Capital Adequacy Ratio
(BCAR) declines, operating performance deteriorates or if insured losses
deplete capital.

A.M. Best remains the leading rating agency of alternative risk transfer
entities, with more than 200 such vehicles rated in the United States and
throughout the world.

For current Best’s Credit Ratings and independent data on the captive and
alternative risk transfer insurance market, please visit

The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Key criteria utilized include: “Risk Management and the Rating
Process for Insurance Companies”; “Understanding BCAR for Property/Casualty
Insurers”; and “Evaluating non-Insurance Ultimate Parents.” Best’s Credit
Rating Methodology can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more information,
visit www.ambest.com.

       Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.


A.M. Best Co.
Janet Hernandez, 908-439-2200 ext. 5767
Senior Financial Analyst
Rachelle Morrow, 908-439-2200 ext. 5378
Senior Manager, Public Relations
Steven Chirico, CPA, 908-439-2200 ext. 5087
Assistant Vice President
Jim Peavy, 908-439-2200 ext. 5644
Assistant Vice President, Public Relations
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