The PURE Group Structure
Collectively, the companies that make up The PURE Group provide the PURE membership with exceptional financial strength and flexibility. At its center is the member-owned insurer, Privilege Underwriters Reciprocal Exchange (PURE). Fueled by surplus contributions from the membership, this is the entity that underwrites and issues policies. PURE is pooled with a reinsurance company, PURE Insurance Company (PIC), and the two share all premiums and losses equally (after the impact of third-party reinsurance)—note that this is exclusive of surplus contributions, 100% of which benefit PURE and its membership. The pooling agreement is designed to achieve three things: It increases the available surplus capital for PURE and its members, it provides enhanced capital flexibility, and it strengthens the alignment of interest with outside investors.
Privilege Underwriters, Inc. (PUI) is the holding company for PURE Risk Management LLC (PRM) and PIC; and provides both capital and operational resources for both.
PRM, a subsidiary of PUI, serves as the Attorney-in-Fact (independent management company) 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 required to run the insurance operations of PURE.
With the formation of Privilege Group Holdings in 2015, PUI was recapitalized with investments from two of the world’s preeminent private equity investors—Stone Point Capital and Kohlberg Kravis Roberts (KKR)—in addition to XL Catlin, a leading global insurance company. This recapitalization supports PURE’s continued independence during a period of massive consolidation in the industry.