dedicated to providing property & causality insurance to successful,
comprehensive coverage, including insurance for high value homes, automobiles,
watercraft, excess liability, jewelry & art; and excellent service to an
Florida domiciled reciprocal insurance exchange, PURE is unique because it is
owned by its members (policyholders). The PURE model has significant benefits
for its members:
policies are participating. This means members could receive
- PURE is
committed to making use of Subscriber Savings Accounts (SSA) to build surplus
in the company, and create value for our members.
policies are non-assessable (Florida Statute 629.261). A member's liability
ends with the cost of his/her policies.
- PURE is
rated A- (Excellent) by A.M. Best.
Risk Management, LLC serves as the attorney-in-fact and is led by a management
team recognized as leaders in the high net worth property and casualty
Subscribers' Advisory Committee principally made up of PURE members assures
that management hears the voice of the membership.
Benefits of Membership
There are many benefits to being a member of
PURE. Here are just a few.
highly selective. We know a great deal about insuring successful families and
we use that insight to carefully select a distinguished membership. By doing
so, we reduce the cost for all members.
AND we're secure. PURE is led by a team of professionals widely recognized as
the most experienced and accomplished in this niche. For all of the advantages
of our experience, we benefit from our fresh start. A.M. Best has recognized
our strengths with a financial strength rating of A- (Excellent).
coverage is designed with your input to fit your needs. Many people don't buy
enough insurance to rebuild their home or replace their contents. Others
(particularly vacation homeowners) buy far more than is needed. We empower our
members to buy the right amount - not more, not less.
policyholders are members. And the members own PURE. Stock insurance companies
exist to maximize the wealth of their shareholders. Our mission is simple:
Through innovative products and expert advice & service, we are committed
to helping our membership lower the price of their insurance today and reduce
their overall cost of risk for the long term.
creating a new standard of service. We believe that the opportunity exists to
exceed all expectations of our membership.
A Reciprocal Insurance Exchange is typically
defined as a group of individuals, corporations or entities who, as members,
agree to exchange contracts of insurance (policies) and share their insurance
risks among themselves within their select group. Each member (policyholder) of
a reciprocal exchange individually appoints and authorizes a common
attorney-in-fact to manage the affairs of the exchange.
Two of the
six largest personal automobile insurers in the United States (USAA and Farmers
Insurance Group) are reciprocals.
Financial Strength & Rating
PURE has earned a Financial
Strength Rating of A- (Excellent) from A.M Best.
press release issued by A.M. Best on August 6, 2008:
"A.M. Best Co. has
assigned a financial strength rating (FSR) of A- (Excellent) and issuer credit
ratings (ICR) of "a-" to The PURE Group of Insurance Companies (PURE) and its
members: Privilege Underwriters Reciprocal Exchange and PURE Insurance Company.
All companies are domiciled in Fort Lauderdale, FL. The outlook for the ratings
reflect PURE's solid risk-adjusted capitalization, moderate operating leverage
measures currently maintained and anticipated in its business plan, prudent
reinsurance programs and management's previous successful history in the niche
of high net worth personal lines clients. The ratings also contemplate the
additional financial flexibility afforded PURE through its parent company with
multiple investor sources, as well as the growing positive impact of surplus
contributions from PURE subscribers..."
Subscriber Savings Accounts (SSAs)
At the end of each year,
after accounting for all losses and all expenses, PURE deposits the remaining
premium (if any) paid by members into Subscriber Savings Accounts held in the
name of each active member.
deposits are returned to Members if and when they are no longer insured by
PURE. Until that time, these funds can be used as surplus to pay losses and
help PURE build its financial strength.
advantage for PURE and its members is that PURE does not have to pay tax on the
"savings" deposited into these accounts; so the balance available as surplus
can build much more rapidly than retained earnings in a typical insurance
company. Provided members paid their premiums with "after-tax" dollars, there
should never be a taxable event for a member either.*
As a point
of reference, United Services Automobile Association (USAA) reported that
approximately $6 Billion (or more than half of USAA's surplus) was held in
Subscriber Savings Accounts at year-end 2005.
* PURE does
not provide tax advice. Please consult your tax professional with any
Surplus is the capital that insurance companies keep on
hand to pay losses that may arise from unforeseen events. Most successful stock
insurance companies build surplus through the retention of after-tax profits -
driven in large part by the premiums paid by policyholders. Most new insurance
companies are funded by, and managed for the profit of, outside investors.
to keep its insurance premiums low. Accordingly, PURE members are required to
make an annual surplus contribution in each of their first five years of
membership. Surplus contributions are equal to 10% of their annual High Value
Homeowners and Personal Watercraft premium and 4% of annual premium for all
other lines of business.
members should have no expectation of its return, surplus contributions enable
PURE members to benefit over time through a combination of lower premiums,
future dividends and deposits into Subscribers Savings Accounts.
material is descriptive only. The precise coverage offered is subject to the
terms and conditions of the policies issued.
PURE, All Rights Reserved.