AM Best has affirmed the ratings of the captive insurer of ultimate parent Sony Group Corporation.

AM Best said it had 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 ratings reflect PMG’s balance sheet strength, which AM Best assessed 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 Sony.

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 its conservative investment strategy.

The agency said the company’s operating performance reflected combined and operating ratios that continue to outperform industry averages due to favourable underwriting leverage and low underwriting expense structure.

PMG’s role in providing coverage for low-frequency and high-severity claims for its parent is supplemented by a comprehensive reinsurance programme.

The ratings also benefit from PMG’s strategic role as Sony’s only captive insurance company. As an integral component of Sony’s ERM, PMG’s role is to meet the global insurance requirements of the parent while also providing risk management services to Sony group members.

PMG writes commercial property and marine coverages, and employee benefits coverage for Sony employees located outside Japan. It began writing cyber coverage in 2019.