A.M. Best has affirmed the financial strength rating of “A- (Excellent)” and the issuer credit rating of “a-” of Sony Group’s captive insurance company, PMG Assurance.
According to A.M. Best, the ratings reflect PMG’s excellent capitalisation, strong operating performance and strategic position as the captive insurance company for the Sony Group, whose ultimate parent is Sony Corporation.
In addition, the ratings reflect PMG’s role as a single parent captive of Sony, the support provided by its exponentially larger parent and the resources available to it if necessary.
PMG writes mostly proportional property and marine reinsurance business and ceased writing life business in January. However, PMG currently added a small amount of employee benefits coverage.
According to A.M. Best, these factors are offset by PMG’s large exposure to earthquake related-losses in Japan and potential constraints caused by Sony’s modest credit risk profile given PMG’s dependence on Sony.
A.M. Best noted that the captive continues to be an integral component of Sony’s risk management platform.
