A.M. Best Affirms Ratings of PMG Assurance Ltd.
2009-01-13 17:07:00 -
A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of "a" of PMG Assurance Ltd. (PMG) (Bermuda). The outlook for both ratings is stable.
These ratings reflect PMG's excellent capitalization, historically strong operating performance and strategic position as the captive insurance company of Sony Corporation (Sony) (Japan) (NYSE: SNE). These strengths are partially offset by the company's exposure to potentially large natural catastrophe losses and its limited business profile as a capacity provider in the open reinsurance market.
PMG's results have been excellent in recent years. 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 recognizes PMG's distinct risk appetite but also its limited operational resources and scale. Consequently, A.M. Best does not expect PMG to expand its premium growth substantially but to maintain the company's current position in the global reinsurance market as a specialized player with a wide geographic distribution of risks.
In addition, PMG is addressing the unprecedented turmoil in the capital markets through a movement of part of its investment portfolio into favorably performing mutual funds as well as short-term deposits with an affiliated Sony company.
A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world.
For current Best's Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
A.M. Best Co.
Analysts:
Thomas Herriger, 908-439-2200, ext. 5375
thomas.herriger@ambest.com
or
Steven Chirico, CPA, 908-439-2200, ext. 5087
steven.chirico@ambest.com
or
Public Relations:
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
