Best Affirms PMG’s Ratings
A.M. Best Co. has affirmed the financial strength rating of A [Excellent] and issuer credit rating of “a” of Bermuda’s PMG Assurance Ltd.
The outlook for both ratings is stable.
The ratings reflect PMG’s excellent capitalisation, historically strong operating performance and strategic position as the captive insurance company for Sony Group.
These strengths are partially offset by PMG’s exposure to potentially large natural catastrophe losses.
PMG’s role is to meet certain global insurance requirements of Sony’s group members.
The company’s strengths are derived from its underwriting focus, long-standing customer relationships and conservative operating strategy.
Best analysts pointed out PMG’s results have varied in recent years. While it has benefitted from rate increases, the company experienced several catastrophe-related incidents in 2011 that had a significant impact on its capitalisation.
PMG was able to withstand this adverse claim experience at the current rating level, and management has ensured A.M. Best of Sony’s commitment to maintaining prudent capital levels.
Best concluded that PMG could experience negative rating movement if capital levels to not continue to support its rating level. Positive rating movement is possible for PMG’s ratings if the overall risk profile of Sony improves in the near term.
