OLDWICK, N.J. --(BUSINESS WIRE)

AM Best has revised the outlook to stable from positive for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Prime Insurance Company (Prime) (Chicago, IL). The outlook of the FSR is stable.

The Credit Ratings (ratings) reflect Prime’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

Prime’s balance sheet is indicative of the company’s very strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), positive earnings contributing to surplus growth year over year and adequate liquidity supplemented by positive operating cash flows. The balance sheet strength was negatively impacted by material adverse loss development during the third quarter of 2024 and the group has projected an overall pre-tax operating loss for 2024. AM Best expects Prime’s operating results and capital generation to revert to its historical level in 2025. The balance sheet is supported further by a quota share arrangement led by strong reinsurance partners, including RLI Insurance Company, which not only acts as a reinsurer, but as an equity partner-owner as well.

Prime’s largest line of business is commercial auto liability. This sector has been challenged in recent years by increased loss trends. As an excess and surplus writer, Prime has been successful in generating significant growth and profits from this dislocated market. Despite the adverse reserve development, the group’s operating performance remains favorable when compared with its peers.

Prime has a neutral business profile as a predominant surplus lines insurer authorized to conduct business in all 50 states and as a licensed admitted insurer in states that require admitted paper. ERM is appropriate for the company and is the tie that binds the enterprise together as a focused insurance company.

This press release relates to Credit Ratings that have been published on AM 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 see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Kourtnie Beckwith
Senior Financial Analyst
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Christopher Sharkey
Associate Director, Public Relations
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Jieqiu Fan
Associate Director
+1 908 882 1762
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Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
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