PURE & Its Affiliates
PURE and its affiliates are a specialist group of companies with common management serving the personal insurance needs of successful families across the United States. Collectively, these companies benefit the PURE membership by creating excellent financial strength, capital flexibility and a strong sense of alignment of interests between policyholders and an elite group of outside shareholders.
THE PURE GROUP OF INSURANCE COMPANIES ENJOYS A FINANCIAL STRENGTH RATING OF A (EXCELLENT) WITH A STABLE OUTLOOK FROM A.M. BEST.
Privilege Underwriters Reciprocal Exchange (PURE)
At the heart of the PURE Group of Insurance Companies is a member-owned insurer, Privilege Underwriters Reciprocal Exchange (PURE).
Members pay their premiums to PURE and contribute surplus capital for the first five years of membership. All in, the cost of PURE policies (including surplus contributions) has led members to report significant savings—an average of 20% or more annually on Homeowners insurance.1
While most members view surplus contributions as part of the overall cost of their insurance, they are separate from typical premiums and much more efficient. For starters, there are no fees paid to the Attorney-in-Fact (independent management company) on members’ surplus contributions, and they are not shared with PURE Insurance Company (PIC), our pooled insurer. This helps improve operating results and build capital in the member-owned exchange.
Claims are typically paid from premiums and shared with participating reinsurers (including our pooled insurer). There is no risk of assessments, even in a bad year, and members participate in the good outcomes through Subscriber Savings Accounts (SSAs). To date, nearly $81 million has been allocated back to the membership through SSAs, and we are delighted to share that we will make an allocation of $21.5 million for the 2018 year. SSAs are one of the more tangible examples of an alignment of interests.
Members also play an important part in the governance of the company through a Subscribers’ Advisory Committee (SAC). This group provides a voice of the membership to management and has the responsibility of procuring and reviewing the annual independent audit for PURE.
Privilege Underwriters, Inc. (PUI)
Privilege Underwriters, Inc. (PUI) is a holding company for a collection of affiliated businesses that are shareholder-owned and play an important role in making the PURE Group work well. These companies include PIC, PURE Risk Management (PRM), PURE Programs and The Haven Art Group. Together, they create an entrepreneurial environment for employees, a source of additional capital and capital flexibility for the insurance companies and a broader service offering for PURE members.
PURE Insurance Company (PIC)
PIC is a stock insurer that is pooled with PURE and shares common management. PIC provides the membership with real capital support and tremendous capital flexibility while reinforcing an alignment of interests between the parties.
A.M. Best treats the PURE Group of Insurance Companies (PURE and PIC) as “pooled capital” because the pooling agreement requires the companies to combine their resources and obligations and to share in premiums, losses and almost all expenses.
Because PIC does not write any direct business itself, the pooling agreement means that PIC stands behind PURE with all of its resources. PIC also brings capital flexibility to the PURE Group since PIC or PUI can easily access capital markets.
The agreement also helps to strengthen alignment by ensuring that the investor-owned part of the PURE Group of Insurance Companies shares in underwriting results.
PURE Risk Management (PRM)
PURE Risk Management (PRM) serves as the Attorney-in-Fact for PURE. PRM is paid a fee to provide marketing, underwriting and claims-administration services for PURE. In turn, PRM provides the human, technological and operational resources and intellectual capital required to run the insurance operations of PURE.
PURE Programs is a Managing General Underwriter (MGU) that provides solutions to PURE members and other high net worth consumers who face complex or extreme risks and are accustomed to higher levels of service. PURE Programs is paid a commission by independent insurers who assume these risks. It does not pool capital with the PURE Group of Insurance Companies. A PURE Programs policy does not qualify an individual as a PURE member, and PURE Programs policyholders do not sign a PURE Subscriber’s Agreement, make surplus contributions to PURE or receive the benefit of PURE Subscriber Savings Accounts (SSAs).
The Haven Art Group
The Haven Art Group offers bespoke services for PURE members who collect fine art, jewelry or antiques. Their services include collection management, needs assessments, conservation, curators for hire and disaster response plans. They also work to manage art collections and claims for some of the world’s most prestigious museums and corporations.
Stone Point Capital, KKR, Management, AXA XL
Two of the world’s preeminent private equity investors—Stone Point Capital and KKR—in addition to AXA XL, a leading global insurance company, invest in Privilege Group Holdings (PGH). These investors support PURE’s continued independence and provide exceptional access to capital.
1 Average annual savings on Homeowners insurance for members reporting prior carrier premiums from Jan. 2011 through Feb. 2019. Actual savings, if any, may vary.