A.M. Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” of PMG Assurance. The outlook of these credit ratings (ratings) is stable.
Based in Bermuda, A.M. Best categorises PMG’s balance sheet strength as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
These ratings reflect PMG’s strategic position as the captive insurance company for the Sony Group, whose ultimate parent is Sony Corporation.
PMG is a pure captive of Sony, and its role is to provide risk management services to Sony Group members.
The captive’s strengths are derived from its underwriting focus, conservative operational strategy and emphasis on risk management controls, which are integrated with those of its parent.
It predominantly writes commercial property and marine coverages for Sony, and employee benefits coverage for Sony employees outside of Japan.
PMG’s balance sheet strength is assessed as very strong, as evidenced by its strongest level of risk-adjusted capitalisation, excellent liquidity and conservative investment strategy.
The captive’s operating performance continues to be strong, with favourable net income in four of the past five years driven predominantly by net underwriting income.
According to A.M. Best, PMG is susceptible to volatility in earnings due to the low frequency and high severity losses it insures. However, the captive mitigates its exposures through the use of a comprehensive reinsurance programme.
