AM Best has affirmed the financial strength rating of A (excellent) and the long-term issuer credit rating of “a+” (excellent) of Bermuda-domiciled PMG Assurance. The outlook for the ratings is stable.
PMG is owned by Sony and writes commercial property, marine, directors and officers, cyber risk and employee benefits insurance for Sony and its affiliates.
The ratings reflect PMG’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
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 underwriting expertise and emphasis on risk management controls, which are well-integrated with those of its parent.
Although 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.
Strong operating performance reflects PMG’s consistent results in its combined and operating ratios that continue to outperform industry averages.
The rating also reflects PMG’s risk-adjusted capitalisation at the strongest level, as measured by Best’s capital adequacy ratio (BCAR).