PMG Assurance, the Bermuda-based captive insurance company owned by the Sony Corporation, has had its financial strength rating of A affirmed by AM Best.

The New Jersey-based rating agency said the ratings reflected PMG's excellent capitalisation, historically strong operating performance and strategic position as Sony's captive.

"PMG's results have been excellent in recent years," AM Best said in its commentary. "While it has benefited from rate increases, the company, through prudent underwriting, has mostly avoided the major wind and flood related losses that have impacted the industry in the past five years. Whether servicing a portion of Sony's insurance/reinsurance requirements or those of selected third parties, PMG's management continues to focus on writing only profitable business with high-quality cedents. This strategy not only recognises PMG's distinct risk appetite but also its limited operational resources and scale."

According to AM Best, PMG is unlikely to expand its premium growth substantially but it should "maintain its current position in the global reinsurance market as a specialised player with a wide geographic distribution of risks".