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A.M. Best Revises Outlook to Positive for Members of PURE Group of Insurance Companies

FOR IMMEDIATE RELEASE

OLDWICK - APRIL 28, 2015
A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" for members of PURE Group of Insurance Companies (PURE): Privilege Underwriters Reciprocal Exchange and PURE Insurance Company. All companies are domiciled in Fort Lauderdale, FL.

The positive outlook reflects PURE's risk-adjusted capitalization that supports its current risk profile. In addition, PURE maintains comprehensive reinsurance programs that mitigate the impact of modeled catastrophe weather-loss estimates. The PURE management team, with extensive experience in the niche market of high net worth personal lines, has built a strong culture of service supported by scalable operating systems. PURE has also reported improved operating performance in recent years largely due to net loss ratios that compare favorably to industry averages. Furthermore, additional financial flexibility is provided through PURE's parent company and outside sources, as well as from subscribers' surplus contributions that are anticipated to continue as new business is generated and retained over several years.

These positive factors are partially offset by PURE's relatively significant business growth in areas that remain susceptible to weather-related events. However, PURE subjects this growth to highly selective underwriting guidelines while maintaining comprehensive reinsurance programs that are intended to mitigate major losses stemming from weather-related events. Furthermore, management pursues a disciplined and timely approach when evaluating the type and quality of new markets in new states and takes the appropriate measures to ensure sustainable, predictable and prudent growth.

PURE's ratings could experience further positive movement following several years of favorable earnings while increasing its risk-adjusted capitalization. However, the ratings and outlook may come under negative pressure if an unfavorable earnings trend develops causing its capital to erode.

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. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

Catastrophe Analysis in A.M. Best Ratings

Evaluating U.S. Surplus Notes

Rating Members of Insurance Groups

Risk Management and the Rating Process for Insurance Companies

Understanding BCAR for Property/Casualty Insurers

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best's Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.

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