A.M. Best Affirms Ratings of PMG Assurance, Ltd.

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit rating (ICR) of “a” of PMG Assurance, Ltd. (PMG) (Bermuda). The outlook for both ratings is stable.

These ratings reflect the company's excellent capitalization, historically strong operating performance and strategic position as the captive insurance company for Sony Group. These strengths are partially offset by PMG’s exposure to potentially large natural catastrophe losses.

PMG's role is to meet certain global insurance requirements of Sony's group members. In 2010, PMG will not be renewing nor participating in any non-related third party treaties in any form. PMG will continue its operations in Bermuda but with a strategic change in underwriting directed fully towards Sony-related business as a “pure” captive.

The company’s strengths are derived from its underwriting focus, long-standing customer relationships and conservative operating strategy. Writing mostly proportional property and marine reinsurance business, PMG has added some life reinsurance business to achieve a more diversified and stable portfolio of exposures. However, the company maintains a large exposure to earthquake-related losses in Japan due to its coverage of Sony risks. In addition, PMG has some exposure to North American hurricane risks, which are currently being addressed through the exit of this particular geographic segment.

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 recent years.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

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.