PMG gets rating thumbs up from AM Best

AM Best has affirmed the financial strength rating of A- (Excellent) of PMG Assurance (Bermuda), adding that the outlook of the rating is stable.

According to the rating agency this action reflects PMG’s balance sheet strength, which AM Best categorises as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The rating also 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 meet certain global insurance requirements of Sony Group members.

AM Best said that the company’s strengths are derived from its underwriting focus, long-standing customer relationships and conservative operating strategy. PMG writes mostly proportional property, marine reinsurance business and employee benefits coverage for Sony employees. Due to the nature of the relationship between PMG and Sony, changes in Sony’s credit risk have certain impact on PMG’s ratings.

The rating agency said that PMG’s success is reliant on Sony’s ability to support its credit risk profile, competitiveness and risk management. The captive continues to be an integral component of Sony’s risk management platform. AM Best’s view of third-party credit ratings and market-based credit risk measures of Sony indicates a positive trend, which resulted in PMG’s outlook being stable.

Additionally, negative rating pressure might arise if there is any significant downward movement in Sony’s risk profile. AM Best said that any upward rating movement is predicated on improvement in Sony’s risk profile, coupled with maintenance of PMG’s capital strength.