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A.M. Best Upgrades Ratings of Prism Assurance, Ltd CONTACTS:
FOR IMMEDIATE RELEASE OLDWICK, N.J., Oct. 27, 2008—A.M. Best Co. has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and the issuer credit rating to “a-”from “bbb+” for Prism Assurance, Ltd (Prism) (Burlington, VT). The outlook for both ratings is being revised to stable from positive. The ratings reflect Prism’s excellent capitalization
and profitability, as well as its strategic role as the captive insurance
company of Apogee Enterprises, Inc. (Apogee) [NASDAQ: APOG]. The ratings
also consider the substantial financial flexibility available to Prism
as part of Apogee. In recent years, management has implemented a strategy to strengthen the company’s surplus position, using the significant royalty revenue stream generated by an intangible asset. Prism’s balance sheet strength has consequently improved and underwriting leverage measures are now very conservative, though it retains relatively high insured limits. Prism also has reversed unfavorable operating results and registered significant underwriting and operating profits in recent years. As a result, its surplus has increased substantially. The company’s profitability remains strong even if the royalty revenue is disregarded. This reflects the retrospective rating program introduced in 2004 as well as a more stable source of business from Apogee. Prism’s parent is very strong and profitable and has a stable profile following the divestiture of non-core and variable businesses. A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world. For current Best’s Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visitwww.ambest.com. ### |
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