AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of PMG Assurance Ltd. (PMG) (Bermuda). The outlook of these Credit Ratings (ratings) is stable.

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). The company also receives rating enhancement provided by its ultimate parent, Sony Group Corporation (Sony) [NYSE: SONY].

PMG’s balance sheet strength is assessed as very strong, and is supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), excellent liquidity and its conservative investment strategy. The company’s operating performance reflects combined and operating ratios that continue to outperform industry averages due to favorable underwriting leverage and low underwriting expense structure. PMG’s role in providing coverage for low frequency and high severity claims for its parent is supplemented by a comprehensive reinsurance program.

The ratings also benefit 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 focus, conservative operational strategy and emphasis on risk management controls, which are well-integrated with those of its parent. PMG writes commercial property and marine coverages, employee benefits coverage for Sony employees located outside of Japan, and began writing cyber coverage in 2019.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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