Privilege Underwriters, Inc. and the affiliated companies of the PURE Group of Insurance Companies have announced that Ross Buchmueller, founder and Chief Executive Officer (CEO) of PURE, will be leaving the company at the end of 2023 after 18 years with the firm.
Martin Leitch, the Co-President and Chief Underwriting Officer (CUO), will take over as the CEO on July 1, 2023.
Founded in 2006, PURE has experienced more than 15 consecutive years of 15% or greater growth in managed premiums. The company joined the Tokio Marine Group following its acquisition of PUI in 2019.
During his tenure as CEO of PURE, Buchmueller has been recognized as a winner of the EY Entrepreneur of the Year, the Family Wealth Report Leading Contributor to the wealth management industry, the Private Risk Management Association Industry Leader Award and an inductee into the Insurance Business America Hall of Fame.
Satoru Komiya, CEO of Tokio Marine Holdings, said, “We have been so pleased to have PURE as part of the Tokio Marine family. In addition to its contributions to our financial success, we have been inspired by PURE’s spirit of employee engagement, member service and innovation. I have enjoyed working alongside Ross and wish him and his family all of the best. My colleagues and I look forward to supporting Martin and his team to help PURE reach its full potential. I have every confidence that PURE will maintain its sustainable growth by continuing to deliver an exceptional member experience.”
Leitch joined PURE in 2022 after more than 20 years with General Reinsurance Corporation where he served as Co-President and CUO. Dave Logan, who has served as Chief Risk Officer at PURE for the past three years has been appointed President.
Leitch commented, “It’s an honour to assume the responsibility of CEO of this remarkable firm. We are all grateful for the foundation that the three founders of PURE have built and look forward to the challenge of taking this company to even greater heights.”
Jodi Lash, the Chair of PURE’s Subscribers’ Advisory Committee, said, “On behalf of the PURE membership, I want to thank Ross for his many contributions to the creation and the ongoing success of PURE. We have enjoyed getting to know Martin and Dave and remain confident that they will be great stewards for the next chapter of this company.”
Buchmueller concluded, “I look forward to spending the balance of the year helping Martin, Dave and the team to ensure a smooth transition. I will be forever grateful to the 1,100 colleagues who deliver on PURE’s promise every day, and I will remain the most enthusiastic ambassador for them and their mission.”
Post the announcement however, AM Best has downgraded the Financial Strength Rating of the company to A (Excellent) from A+ (Superior) and the Long-Term Issuer Credit Rating to “a+” (Excellent) from “aa-” (Superior). At the same time, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of PURE Specialty Exchange (PSE). AM Best also has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of PURE Insurance Company (PIC).
The outlook of these Credit Ratings is stable. PURE and PIC are domiciled in Fort Lauderdale, FL. Concurrently, AM Best has withdrawn the ratings of PIC as the company has requested to no longer participate in AM Best’s interactive rating process. These ratings of PURE reflect its balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The revision in the operating performance assessment to marginal from adequate reflects the negative impact of macro conditions on underwriting results, including higher-than-average catastrophe losses, increased reinsurance costs and inflationary pressures.
The ratings consider implicit and explicit support provided by Tokio Marine Holdings, and its lead insurance operating company, Tokio Marine & Nichido Fire Insurance Co., Ltd., and the affiliation between the U.S. subsidiaries of TMNF. PURE aligns with TMHD’s strategy of expanding its international business through acquisition in developed and emerging markets, in addition to providing diversification of revenues and customer segments.
