A.M. Best has affirmed the financial strength rating of “A- (Excellent)” and issuer credit rating of “a-” of PMG Assurance based in Bermuda. The outlook for both ratings is negative.
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.
PMG has a strong underwriting focus, writing mostly proportional property and marine reinsurance business. In the future the firm expects to add a small amount of employee benefits coverage.
A.M. Best said: “Due to the nature of the relationship between PMG and Sony Corporation, the changes in Sony’s credit risk profile have put pressure on PMG’s ratings. PMG’s success is reliant on Sony’s ability to increase its credit risk profile, competitiveness and risk management.”
“The captive continues to be an integral component of Sony’s risk management platform. A.M. Best’s view of third-party credit ratings, as well as market-based credit risk measurers of Sony indicates negative ratings pressure on PMG.”
