6 March 2023Analysis

PMG retains excellent AM Best ratings

AM Best has affirmed its financial strength rating of A (Excellent) and long-term issuer credit rating of “a+” (Excellent) for PMG Assurance, Sony’s captive. The outlook of the credit ratings is stable.

According to Best, the ratings reflect PMG’s balance sheet strength, assessed as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM). It also receives a rating enhancement from its ultimate parent, Sony Group. PMG is Sony’s sole captive insurance company and an integral component of Sony’s ERM. It writes commercial property and marine coverages and employee benefits coverage for Sony employees outside Japan. It also began writing cyber coverage in 2019.

PMG’s balance sheet strength is assessed as very strong, supported by risk-adjusted capitalization at the strongest level, as measured by Best’s capital adequacy ratio, 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 favourable underwriting leverage and low underwriting expense structure, it added. PMG