Strong ratings of Sony’s Bermuda captive affirmed
Sony’s Bermuda captive has won acknowledgement of its outstanding financial strength and credit ratings by AM Best.
The rating agency has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “A+” (Excellent) of PMG Assurance Ltd (Bermuda).
The outlook of these credit ratings is stable.
The agency said the ratings reflected 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.
The company also receives rating enhancement provided by its ultimate parent, Sony Group Corporation.
The ratings also benefit from PMG’s strategic role as Sony’s only captive insurance company.
PMG is an integral part of Sony’s enterprise risk management, whose role is to meet the global insurance requirements of the parent while also providing risk management services to Sony group members.
PMG’s balance sheet strength is assessed as very strong, and is supported by risk-adjusted capitalisation at the strongest level, as measured by Best’s capital adequacy ratio, excellent liquidity and conservative investment strategy.
AM Best said the operating performance reflected consistent combined and operating ratios that continued to outperform industry averages.
A critical function of PMG is to cover the parent for potential low frequency, high severity claims. PMG mitigates this risk through its comprehensive reinsurance programme.
Importantly, the agency said, PMG exhibited strengths that are derived from its keen underwriting focus, conservative operational strategy and emphasis on risk management controls, which are well-integrated with those of its parent.
PMG writes predominantly commercial property and marine coverages, and employee benefits coverage for Sony employees located outside of Japan.
PMG’s surplus growth has enabled it to retain higher net risk exposures on its marine business, in addition to offering new lines of business such as cyber, which it began offering in 2019.
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