Financial Strength

A.M. Best Upgrade


A.M. Best, one of the insurance industry’s leading rating agencies, upgraded the Financial Strength Rating for members of the PURE Group of Insurance Companies, including Privilege Underwriters Reciprocal Exchange, to A (Excellent) with a Stable outlook. Rating agencies are often reluctant to upgrade growing companies under the belief that growth brings uncertainty and puts a strain on operations. This rating reflects PURE’s strong capitalization, highly conservative reinsurance program, management’s track record and a strong investment portfolio.

Gross Written Premiums

PURE continues to experience steady organic growth in gross written premiums.


Quoted Premiums

The demand for PURE has never been greater. Historically, the year-over-year increase in quotes issued has been in the single digits, but in 2018, it grew by more than 30%—while the percentage of new business we chose to bind declined. This means there is more awareness of the PURE brand, and our underwriters can be even more selective in who they allow into the membership.


The PURE Membership

As of the end of 2018, the membership comprises more than 80,000 responsible, successful individuals and families.



Both PURE and the PURE Group of Insurance Companies (the combination of PURE and PIC) have experienced steady growth in admitted assets year-over-year.


The Impact of Surplus Contributions

Surplus contributions are included in a member’s cost of insurance for their first five years of membership. These funds, which equal a small percentage of a member’s premiums, provide a steady flow of capital to PURE, supporting its financial strength and creating a favorable cost of capital. This lower cost of capital contributes to PURE’s highly competitive rates.


Policyholder Surplus

Policyholder surplus represents the capital that allows an insurer to meet all of its obligations beyond premiums, reserves and reinsurance.

In 2018, the PURE Group of Insurance Companies surplus grew by more than 21%.


Net Written Premium to Surplus Ratio

The PURE Group of Insurance Companies grew surplus at a faster rate than premiums, which lowered our premium to surplus ratio once again. This reduction is enhanced by a new comprehensive whole-account pro-rata reinsurance program that was introduced in 2018. The PURE Group of Insurance Companies maintains a lower surplus ratio than is typically seen among personal lines insurers.


*2018 Industry Average is defined as the weighted average of net written premium to surplus ratio for the top ten U.S. Homeowners and Automobile carriers—defined as carriers with at least 80% of domestic writings in Homeowners and/or Personal Automobile lines.


PURE's Combined Ratios

An insurer’s combined ratio measures losses and expenses against premium to help evaluate underwriting results. A combined ratio below 100% typically indicates profitability. However, a growing insurance company may show statutory underwriting losses even with a combined ratio under 100%. Management monitors three combined ratios to evaluate PURE’s operating performance.


Indicates whether or not an insurer is collecting enough premium to cover its claims obligations and operating expenses prior to the cost/benefit of reinsurance.



Indicates profitability net of the cost/benefit of reinsurance. It reflects items included in the statutory P&L.



Adjusts the Net Combined Ratio to reflect the benefit of member surplus contributions, which go directly to PURE’s balance sheet. We believe that this measure provides the most accurate picture of PURE’s claims-paying ability and overall economic performance in any given year.


PURE’s 2018 combined ratios, both with and without the impact of catastrophe-related claims, are presented below.