PURE Group, an insurer focused on the high-net-worth market, has seen it’s AM Best financial strength rating upgraded to A+.
The Superior rating is a change from its previous financial strength rating of A, or Excellent. The upgrades apply to Pure and all of its subsidiaries.
A.M. Best said it sees PURE Group’s balance sheet as “very strong” and notes its “adequate operating performance, neutral business profile and appropriate enterprise risk management” as reasons for the upgrade. But PURE’s new corporate parent – Tokio Marine Holdings, Inc. is also a factor. Tokio Marine closed a $3.1 billion acquisition of PURE Group in February 2020.
“The rating actions consider implicit and explicit support provided by … Tokio Marine Holdings, Inc., its lead insurance operating company, Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF), and the affiliation between the U.S. subsidiaries of TMNF,” A.M. Best said.
A.M. Best noted that PURE Group also dovetails with Tokio Marine’s ongoing strategy of “expanding its international business through acquisition in developed and emerging markets, in addition to providing diversification of revenues and customer segments.” The ratings agency said it expects Tokio Marine’s financial support of PURE to continue.
In a related move, A.M. Best also upgraded PURE Group’s long-term issuer credit ratings to “aa-” from “a+”.
The outlook for PURE’s credit ratings has also been revised to stable from positive.
Source: A.M. Best