Reinsurance, Balance Sheet, & Investments

Reinsurance

PURE continues to purchase significant reinsurance protection from some of the largest, most highly rated and well-respected reinsurance companies in the industry. These reinsurance arrangements protect against large individual losses as well as the impact of catastrophic events on several members at once. As it pertains to catastrophe, our philosophy is to evaluate our potential exposures and expose no more than 20% of the prior year capital (surplus) to any event modeled with a 1-in-100 year probability. We also purchase coverage so that we may respond to multiple events of this magnitude in the same year.

Reinsurance Partners A.M. best rating Home Catastrophe All Other
Berkley Re America A+
Catlin insurance company ltd. A
everest reinsurance company A+
hannover ag A+
LLOYD’S SYNDICATES A
PARTNERRE A
SCOR REINSURANCE A
SIRIUS AMERICA A
SWISS RE A+

Reinsurance Spotlight: Sirius America

Keith Cartmell, Vice President (front center) and Tony Sasso, SVP, Chief Underwriting Officer Property Treaty (far right) from Sirius America join Jeff Paraschac (far left) and Martin Hartley (back center) for a photo during a recent Reinsurance audit meeting.

We often describe our reinsurers as “partners,” and there is no reinsurer on our program that fits that description better than Sirius America Insurance Company (Sirius America), the U.S. affiliate of Sirius International Insurance Group Ltd. (Sirius Group). The best reinsurance relationships are built for the long-run. As such, the decision to enter into one is not often made lightly. The team at Sirius America, led by Dan Wilson, Tony Sasso and Keith Cartmell, spent a great deal of time getting to know PURE’s business and management team prior to offering broad support for our program in 2012. Since then, Sirius America has expanded its reinsurance relationship with PURE each year. Today, Sirius America has the leading position on our Homeowners quota share program, in addition to supporting our catastrophe and per-risk excess of loss treaties. The Sirius America team are valued partners, trusted advisors, and true friends. We appreciate their support and look forward to a mutually successful future.

About Sirius Group: Sirius Group writes worldwide property and casualty reinsurance and insurance through its affiliates Sirius International Insurance Corporation, Sirius America Insurance Company, Lloyd’s Syndicate 1945, and Sirius Bermuda Insurance Company Ltd. In April 2016, Singapore-based CM International Holding Pte. Ltd. (“CMIH”) closed its acquisition of Sirius Group through its Bermuda holding company, CM Bermuda Limited.

Balance Sheet and Investments

Pure 2015 2014 Change Variance
TOTAL CASH & INVESTED ASSETS $176,660,903 $129,839,723 $46,821,180 36%
NET ACCOUNTS RECEIVABLE $147,879,549 $89,624,307 $58,255,242 65%
OTHER ASSETS $507,856 $487,513 $20,343 4%
TOTAL ASSETS $325,048,308 $219,951,543 $105,096,765 48%
         
UNPAID LOSSES & LAE $27,701,345 $19,363,460 $8,337,885 43%
ACCOUNTS PAYABLE & ACCRUED $28,617,144 $22,690,421 $5,926,723 26%
UNEARNED PREMIUMS $70,069,402 $48,858,230 $21,211,172 43%
REINSURANCE PAYABLE $86,930,294 $51,398,685 $35,531,609 69%
OTHER CURRENT LIABILITES $13,123,487 $8,960,109 $4,163,378 46%
TOTAL LIABILITIES $226,441,672 $151,270,905 $75,170,767 50%
         
SURPLUS NOTES $68,156,977 $44,622,093 $23,534,884 53%
MEMBER SURPLUS CONTRIBUTIONS $95,837,459 $72,579,896 $23,257,563 32%
SUBSCRIBER SAVINGS ACCOUNTS $14,464,348 $7,087,203 $7,377,145 104%
UNASSIGNED SURPLUS & OTHER $(79,852,148) $(55,608,553) $(24,243,595) 44%
SURPLUS AS REGARD TO POLICY HOLDERS $98,606,636 $68,680,639 $29,925,997 44%
         
Pure Group 2015 2014 Change Variance
TOTAL CASH & INVESTED ASSETS $403,614,943 $324,884,815 $78,730,128 24%
NET ACCOUNTS RECEIVABLE $135,689,638 $86,175,454 $49,514,184 57%
OTHER ASSETS $8,029,882 $4,471,847 $3,558,035 80%
TOTAL ASSETS $547,334,463 $415,532,116 $131,802,347 32%
         
UNPAID LOSSES & LAE $55,402,688 $38,726,920 $16,675,768 43%
ACCOUNTS PAYABLE & ACCRUED $28,792,623 $24,510,503 $4,282,120 17%
UNEARNED PREMIUMS $140,138,805 $97,716,460 $42,422,345 43%
REINSURANCE PAYABLE $58,118,699 $39,151,286 $18,967,413 48%
OTHER CURRENT LIABILITES $13,126,999 $10,129,558 $2,997,441 30%
TOTAL LIABILITIES $295,579,814 $210,234,727 $85,345,087 41%
         
COMMON CAPITAL STK $920,000 $920,000 - -
CONTRIBUTED CAPITAL $172,122,399 $147,122,399 $25,000,000 17%
3RD PARTY SURPLUS NOTES $68,156,977 $44,622,093 $23,534,884 53%
MEMBER SURPLUS CONTRIBUTIONS $95,837,459 $72,579,896 $23,257,563 32%
SUBSCRIBERS SAVINGS ACCOUNTS $14,464,348 $7,087,203 $7,377,145 104%
UNASSIGNED SURPLUS & OTHER $(99,746,534) $(67,034,202) $(32,712,332) 49%
TOTAL SURPLUS AS REGARDS TO POLICYHOLDERS $251,754,649 $205,297,389 $46,457,260 23%
NUMBERS MAY NOT ADD UP DUE TO ROUNDING

Investments at a Glance

PURE grew its cash and invested assets by $46.8 million in 2015. The increase was driven by positive cash flow from operations and high-quality investments and cash holdings. These were partially offset by negative mark-to-market performance in its CLO Equity holdings which PURE believes is only temporary.

Investment Mix [PURE]

TOTAL CASH & INVESTED ASSETS