Ratings agency AM Best has revised its rating outlook of PMG Assurance (Bermuda), a captive insurance company for the Sony Group, to stable, and affirmed its financial strength rating of A-.
As a pure captive of Sony, PMG’s role is to meet certain global insurance requirement of Sony Group members.
The ratings agency’s view of third-party credit and market-based credit risk measures of Sony indicates a positive trend, which resulted in revising PMG’s outlook to stable from negative.
“The captive continues to be an integral component of Sony’s risk management platform,” AM Best said.
AM Best said the ratings reflect PMG’s excellent capitalisation, historically strong operating performance and strategic position as the captive for Sony Group.
PMG maintains a large exposure to earthquake-related losses in Japan due to its coverage of Sony’s risks, and some of this risk is mitigated through a derivative coverage.
Changes in Sony’s credit risk also have certain impacts on PMG’s ratings, due to its relationship with Sony.
AM Best suggested that PMG’s success is reliant on Sony’s ability to support its credit risk profile, competitiveness and risk management.
Sony, Captive, PMG Assurance, Bermuda, Ratings