Sony captive PMG's A rating affirmed
Tech giant Sony Group's sole captive insurance company has been granted a financial strength rating of A (Excellent) with a stable outlook by ratings agency AM Best said.
The agency said Bermuda-based PMG Assurance's ratings also benefited from PMG’s strategic role as Sony’s only captive insurance company.
"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. 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."
AM Best said the ratings reflected PMG’s balance sheet strength, which AM Best assessed as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM). The company also received rating enhancement provided by Sony.
"The rating reflects PMG’s risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), while maintaining its excellent liquidity, low underwriting leverage and conservative investment strategy in support of the very strong balance sheet strength assessment," AM Best said. "Strong operating performance reflects PMG’s consistent results in its combined and operating ratios that continue to outperform industry averages, stemming from favourable underwriting results and profitability with a low underwriting expense structure.
"While the captive is susceptible to volatility in earnings due to the low frequency and high severity losses for the risks it insures, PMG has a comprehensive reinsurance programme in place for all coverage provided to its parent to mitigate its exposures.
"PMG writes commercial property, marine, directors and officers, cyber risk and employee benefits insurance for Sony and its affiliates."