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Tokio Marine Acquires PUI, the Parent Company of PURE Insurance

What does this mean for PURE and its membership?

February 7, 2020

Tokio Marine Holdings, Inc. and its affiliates (Tokio Marine) completed their acquisition of Privilege Underwriters Inc (PUI) on February 7, 2020. Tokio Marine is one of the largest global insurers and operates in 45 countries and regions with over $33 billion in market capitalization. Tokio Marine is rated A++ “(Superior)” from A.M. Best—the single highest rating that A.M. Best provides.

Here is the new structure for the PURE Group and affiliated companies:

Upon closing, this will be our corporate organization chart.

Impacts on PURE members

    The benefits and obligations of membership are unchanged

    Benefits such as Surplus Contributions and Subscriber Savings Accounts (SSAs) are unchanged. In order to keep PURE’s cost of capital low (which helps support lower premiums), members will continue to make Surplus Contributions for each of their first five years of membership. And we remain committed each year to return to members any premium collected in excess of the claims and expenses paid by PURE, through allocation to SSAs.

    PURE's financial strength and flexibility is increased

    This transaction increases PURE's financial strength and flexibility without changing what members love about their insurance company. PURE will continue to operate as a reciprocal insurance exchange, with all of the benefits of membership. However, its affiliated companies in the PURE Group now have the financial backing of Tokio Marine, one of the largest and most respected insurers in the world. The PURE Group’s financial strength rating of “A” (Excellent) from AM Best has been “under review with positive implications” since the announcement of this transaction. We are optimistic that AM Best and other major rating agencies will soon reflect the support of Tokio Marine in their ratings of the PURE Group.

    Your insurance company has not been acquired

    PURE, your insurance company, has not been acquired and PURE’s reciprocal structure, and the associated benefits of membership, remain unchanged. There is no action required on your part as a result of this transaction. The PURE team remains fully engaged to help you with claims, risk management, billing, or other service needs.

    This transaction does not impact your premium

    PURE’s aim is, and has always been, to charge the “right” price for insurance, not the highest. This dynamic does not change with our new owners. That’s not to say, however, that your policy premium won’t change at renewal. We routinely adjust rates to ensure they accurately reflect our latest views of risk.

    PURE's leadership is not changing

    The same management team that founded PURE 14 years ago, and who built it into the company that it is today, will remain in place and continue to oversee operations

    The Subscribers’ Advisory Committee remains intact and unchanged

    Learn more about the important role this group of PURE members play in making PURE an even better company.

    PURE will continue to enhance its service offerings and grow its team

    There are no expectations for cost reduction, downsizing, or consolidation resulting from this transaction. PURE is always looking to add exceptional, service-oriented individuals to our team. If you’re interested in learning more visit our careers page.

    Your current independent insurance broker does not change

    This transaction has no impact on the way in which you work with your independent insurance broker.

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