The Bermudian-based captive insurer of the Japanese conglomerate, Sony Group Corporation, continues to receive top ratings from AM Best.

The agency affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a+” (Excellent) of PMG Assurance Ltd and designated the outlook of the ratings as stable.

AM Best said: “Strong operating performance reflects PMG’s consistent results in its combined and operating ratios that continue to outperform industry averages, stemming from favourable underwriting results and profitability with a low underwriting expense structure.

“While the captive is susceptible to volatility in earnings due to the low frequency and high severity losses for the risks it insures, PMG has a comprehensive reinsurance programme in place for all coverage provided to its parent to mitigate its exposures.”

PMG writes commercial property, marine, directors and officers, cyber-risk and employee benefits insurance for Sony and its affiliates.

AM Best said the ratings benefit from PMG’s strategic role as Sony’s only captive insurance company.

As an integral component of Sony’s ERM, the agency said, PMG’s role is to meet the global insurance requirements of the parent while also providing risk management services to Sony group members.

AM Best said PMG exhibits strengths that are derived from its keen underwriting expertise and emphasis on risk management controls, which are well-integrated with those of its parent.

The agency said the ratings reflect PMG’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

It said the company also receives rating enhancement provided by its ultimate parent, Sony Group Corporation.

The rating reflects PMG’s risk-adjusted capitalisation at the strongest level, as measured by Best’s capital adequacy ratio, while maintaining its excellent liquidity, low underwriting leverage and conservative investment strategy in support of the very strong balance sheet strength assessment.