[November 16, 2012]

A.M. Best Affirms Ratings of Prism Assurance, Ltd.

A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of Prism Assurance, Ltd. (Prism) (Burlington, VT). The outlook for both ratings is stable.

The ratings reflect Prism's strong capitalization and solid operating performance. Also inuring to the ratings is Prism's strategic role as the captive insurance company of Apogee Enterprises, Inc. (Apogee), and the substantial financial flexibility available to Prism as part of Apogee.

Partially offsetting these positive rating factors is Prism's relatively large retained insurance limits and its limited market profile as a single parent captive. Nonetheless, the ratings recognize the company's balance sheet strength and conservative underwriting leverage measures.

A.M. Best could upgrade Prism's ratings and/or revise its outlook if there is significant improvement in its underwriting performance and capital or a reduction in its overall net exposure. A.M. Best could downgrade the ratings nd/or revise the outlook if the company's Best's Capital Adequacy Ratio (BCAR) declines, operating performance deteriorates or if insured losses deplete capital.

A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world.

For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

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. Key criteria utilized include: "Risk Management and the Rating Process for Insurance Companies"; "Understanding BCAR for Property/Casualty Insurers"; and "Evaluating non-Insurance Ultimate Parents." Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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