Prime Insurance Company Affirms "A (Excellent)" Financial Strength Rating from AM Best

CHICAGO & SALT LAKE CITY--(BUSINESS WIRE)--Prime Insurance Company is pleased to announce that AM Best has affirmed its Financial Strength Rating (FSR) of "A (Excellent)" with a stable outlook. This affirmation reflects AM Best’s continued confidence in Prime’s balance sheet strength, conservative underwriting practices, and long-term profitability.

In their routine review process, AM Best adjusted Prime’s Issuer Credit Rating (ICR) to "a stable" from "a positive." This adjustment reflects broader market trends affecting the commercial auto insurance sector and does not impact Prime’s Financial Strength Rating or its ability to meet policyholder obligations.

Key factors influencing the review included:

1. COVID-related court backlogs delaying claim settlements,
2. Social and economic inflation increasing claim costs, and
3. Actuarial model updates to reflect these evolving conditions.

AM Best highlighted Prime’s proactive approach in addressing these factors and recognized that the company’s reserve strengthening is consistent with industry-wide practices. Additionally, AM Best praised Prime’s strong operating performance and appropriate enterprise risk management, reinforcing the company’s resilience and ability to navigate market challenges effectively.

“We are proud that AM Best has recognized our financial strength and disciplined approach,” said Rick J. Lindsey, CEO of Prime Insurance Company. “Our team remains committed to prudent risk management, operational excellence, and supporting our policyholders and partners through evolving market conditions.”

Key Highlights:

1. Financial Strength Rating (FSR): Affirmed at "A (Excellent)" with a stable outlook.
2. Issuer Credit Rating (ICR): Adjusted to "a stable," reflecting broader market conditions.
3. Balance Sheet Strength: Reaffirmed as strong, with no impact on obligations.
4. Operating Performance & Risk Management: Recognized as strong and appropriate.

Prime Insurance continues to focus on financial stability and transparency. Over the past year, the company has implemented measures to strengthen its financial position, including:

1. Enhanced reserve monitoring and governance processes,
2. Strategic underwriting practices to manage risk effectively,
3. Expansion of risk management and claims oversight capabilities, and
4. Launch of new initiatives, such as the Salvage Operation, to improve results and support insureds.

For more information about Prime Insurance Company, please visit About Prime Insurance | Specialty Insurance Services for contact:

Media Contact:
Barbara Malkowski
SVP Marketing, [e-mail]
Prime Insurance Company

Prime Insurance Company offers customized specialty insurance solutions in the excess and surplus lines marketplace for specialty risks, providing innovative coverage options backed by strong financial stability and a commitment to exceptional service. With over 40 years of experience, Prime continues to deliver tailored insurance solutions to meet the evolving needs of its clients.

*For latest rating visit www.ambest.com