OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has upgraded the Financial Strength Rating to A
(Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating
to "a" from "a-" of PMG Assurance Ltd. (PMG) (Bermuda). The outlook of
these Credit Ratings (ratings) remains 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 ratings also reflect PMG's strategic position as the captive
insurance company for the Sony Group, whose ultimate parent is Sony
Corporation (Sony) [NYSE: SNE]. PMG is a pure captive of Sony, and its
role is to meet certain global insurance requirements and provide risk
management services to Sony Group members. The rating upgrades reflect
the improved credit risk profile of Sony, which has experienced a
positive trend over the past several years. Sony has made improvements
in terms of its earnings quality, increased cash flow and a significant
reduction to debt.
PMG's strengths are derived from its underwriting focus, conservative
operational strategy and emphasis on risk management controls. PMG
writes predominantly commercial property and marine for Sony, and
employee benefits coverage for Sony employees. PMG's balance sheet
strength is assessed as very strong, as evidenced by its risk-adjusted
capitalization, 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 predominantly from
net underwriting income. 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
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 Understanding
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 rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
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Source: AM Best