AM Best Upgrades Issuer Credit Rating of PMG Assurance Ltd.

AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to "a+" from "a" and affirmed the Financial Strength Rating of A (Excellent) of PMG Assurance Ltd. (PMG) (Bermuda). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect PMG's balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The Long-Term ICR upgrade is a result of the rating enhancement provided to PMG by its ultimate parent, Sony Corporation (Sony) SNE. PMG holds a strategic position as the captive insurance company for the Sony Group. It is a pure captive of Sony, and it serves a critical role in meeting certain global insurance requirements and providing risk management services to Sony group members.

PMG writes predominantly commercial property and marine coverages for Sony and employee benefits coverage for Sony employees outside of Japan, as well as cyber coverage. PMG's strong operating results contribute to surplus growth, which enables the captive to maintain higher net retention levels on its marine business, and has enabled it to add lines of business such as cyber. PMG's balance sheet strength is assessed as very strong, as evidenced by risk-adjusted capitalization at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), excellent liquidity and conservative investment strategy. PMG's operating performance continues to be strong, with favorable net income in four of the past five years driven predominantly by net underwriting income, and to a lesser extent, net investment income. PMG's strengths are derived from its underwriting focus, conservative operational strategy and emphasis on risk management controls, which are integrated with those of its parent. The captive is susceptible to volatility in earnings due to the low frequency and high severity losses it insures; however, PMG mitigates its exposures through the use of a comprehensive reinsurance program.

AM 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 AM 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 AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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