|[February 15, 2017]
A.M. Best Revises Outlooks to Stable for PMG Assurance Ltd.
A.M. Best has revised the outlooks to stable from negative and
affirmed the Financial Strength Rating of A- (Excellent) and the
Long-Term Issuer Credit Rating of "a-" of PMG (News - Alert) Assurance Ltd. (PMG)
The ratings reflect PMG's excellent capitalization, historically strong
operating performance and strategic position as the captive insurance
company for the Sony Group, whose ultimate parent is Sony Corporation
(Sony) [NYSE:SNE]. PMG is a pure captive of Sony and its role is to meet
certain global insurance requirements of Sony Group members.
The company's strengths are derived from its underwriting focus,
long-standing customer relationships and conservative operating
strategy. PMG writes mostly proportional property and marine reinsurance
business with a small amount of employee benefits coverage for Sony
employees. The company maintains a large exposure to earthquake-related
losses in Japan due to its coverage of Sony's risks; some of this risk
is mitigated through a derivative coverage.
Due to the nature of the relationship between PMG and Sony, changes in
Sony's credit risk have certain impacts on PMG's ratings. PMG's success
is reliant on Sony's ability to support its credit risk profile,
competitiveness and risk management. The captive continues to be an
integral component of Sony's risk management platform. A.M. Best's view
of third-party credit ratings and market-based credit risk measures of
Sony indicates a positive trend, which rsulted in revising PMG's
outlook to stable from negative.
Additionally, negative rating pressure might arise if there is any
significant downward movement in Sony's risk profile. Any upward rating
movement is predicated on improvement in Sony's risk profile, coupled
with maintenance of PMG's capital strength.
A.M. Best remains the leading rating agency of alternative risk transfer
entities, with more than 200 such vehicles rated in the United States
and throughout the world. For current Best's Credit Ratings and
independent data on the captive and alternative risk transfer insurance
market, please visit www.ambest.com/captive.
This press release relates to Credit Ratings that have been published
on A.M. Best's website. For all rating information relating to the
release and pertinent disclosures, including details of the office
responsible for issuing each of the individual ratings referenced in
this release, please see A.M. Best's Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best's Credit Ratings.
A.M. Best is the world's oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its
subsidiaries. ALL RIGHTS RESERVED.
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