Prime Holdings Insurance Services, Inc., a Utah-based holding company for excess and surplus lines insurance services firms, said it received $10,000,000 from an undisclosed insurance enterprise in exchange for 2,000 shares of non-voting common stock.
The holding company said that all proceeds will be contributed to Prime’s wholly-owned excess and surplus lines insurance carrier subsidiary, Prime Insurance Co., launched in 2006, which is expanding.
This additional capital raises Prime Insurance’s A. M. Best financial size category from VI to VII.
The company said the investment will assist in expediting Prime Insurance’s expansion into New York and California, where it now meets the capitalization requirements of those states.
The company also expects that the added capital will benefit Prime Insurance as it seeks future increases in its A. M. Best Financial Strength Rating, which currently stands at A-.
Prime Holdings Insurance Services Inc. provides the business structure, financing and administrative functions for its network of insurance services. Prime Holdings wrote $52.8 million in premiums during 2016. In addition to Prime Insurance, its companies include transportation specialty insurer Prime Property Casualty Insurance Co. and Evolution Insurance Brokers, an excess and surplus lines broker. Prime Insurance writes hard-to-place risks including commercial property, inland marine, healthcare services, commercial liability, garage services and professional liability.