AM Best Upgrades Issuer Credit Rating of PMG Assurance Ltd.
February 12 2021 - 12:59PM
Business Wire
AM Best has upgraded the Long-Term Issuer Credit Rating
(Long-Term ICR) to “a+” from “a” and affirmed the Financial
Strength 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
categorizes as very strong, as well as its strong operating
performance, limited business profile and appropriate enterprise
risk management.
The Long-Term ICR upgrade is a result of the rating enhancement
provided to PMG by its ultimate parent, Sony Corporation (Sony)
[NYSE: SNE]. PMG holds a strategic position as the captive
insurance company for the Sony Group. It is a pure captive of Sony,
and it serves a critical role in meeting certain global insurance
requirements and providing risk management services to Sony group
members.
PMG writes predominantly commercial property and marine
coverages for Sony and employee benefits coverage for Sony
employees outside of Japan, as well as cyber coverage. PMG’s strong
operating results contribute to surplus growth, which enables the
captive to maintain higher net retention levels on its marine
business, and has enabled it to add lines of business such as
cyber. PMG’s balance sheet strength is assessed as very strong, as
evidenced by risk-adjusted capitalization at the strongest level,
as measured by Best’s Capital Adequacy Ratio (BCAR), excellent
liquidity and conservative investment strategy. PMG’s operating
performance continues to be strong, with favorable net income in
four of the past five years driven predominantly by net
underwriting income, and to a lesser extent, net investment income.
PMG’s strengths are derived from its underwriting focus,
conservative operational strategy and emphasis on risk management
controls, which are integrated with those of its parent. The
captive is susceptible to volatility in earnings due to the low
frequency and high severity losses it insures; however, PMG
mitigates its exposures through the use of a comprehensive
reinsurance program.
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 media use of Best’s
Credit Ratings and AM Best press releases, please view Guide for
Media - Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
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.
Copyright © 2021 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Robert Gabriel Financial Analyst +1 908 439
2200, ext. 5725 robert.gabriel@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Susan Molineux Director +1 908 439 2200, ext.
5829 susan.molineux@ambest.com
Jim Peavy Director, Communications +1 908 439
2200, ext. 5644 james.peavy@ambest.com
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