Earlier this year Utah-based Prime Insurance Company was given an upgraded credit rating by AM Best. The firm’s previous rating of B++ or ‘Good’ was replaced by an A- or ‘Excellent’ score. So how does this actually benefit the company?
Barbara Malkowski of Prime Insurance told Insurance Business America that the upgrade is important because of the high regard that an AM Best rating has in the industry and says that the higher rating will enable more opportunities: “We have provided solutions for very hard to place risks and this opens up doors for us to conduct business with brokers who were prohibited from working with a less than A rated company.”
AM Best’s assessment of Prime states that the firm has a stable outlook: “Upward rating movement is unlikely in the near term; however, long-term rating triggers that could prompt positive movement in PIC's ratings include sustained profitability, returns that outperform peer averages, improved retained earnings and adherence to prudent capital management, as it pertains to holding company leverage, underwriting and operating leverage and risk-adjusted capitalization.”
Barbara Malkowski told us: “Our strength is in our ability to customize solutions for the most difficult risks. We specialize in all types of property and casualty coverages such as commercial auto, commercial property, professional liability, garage services, etc. and now are able to deal with a segment of the industry that kept a distance in the past.”
