AM Best has affirmed the financial strength rating of “A” (Excellent) and the long-term issuer credit rating of “a+” (Excellent) for Bermuda-headquartered PMG Assurance.
PMG is the single-captive captive insurer of Sony Group Corporation. PMG writes commercial property, marine, directors and officers, cyber risk and employee benefits insurance for Sony and its affiliates.
The outlook of these credit ratings is stable.
AM Best says the ratings reflect PMG’s balance sheet strength, which the ratings company assesses as “very strong”. In addition to the captive insurer’s strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
The company also receives rating enhancement provided by its ultimate parent.
The rating reflects PMG’s risk-adjusted capitalisation at the strongest level, as measured by AM Best’s capital adequacy ratio. This is while maintaining its excellent liquidity, low underwriting leverage and conservative investment strategy in support of the very strong balance sheet strength assessment.
Strong operating performance reflects PMG’s consistent results in its combined and operating ratios that continue to outperform industry averages, according to AM Best. These result from favourable underwriting results and profitability with a low underwriting expense structure.
The captive has a comprehensive reinsurance programme in place for all coverage provided to its parent to mitigate its exposures.
As an integral component of Sony’s ERM, PMG’s role is to meet the global insurance requirements of the parent while also providing risk management services to Sony group members.
The ratings agency says PMG exhibits strengths that are derived from its keen underwriting expertise and emphasis on risk management controls, which are well-integrated with those of its parent.
