A.M. Best Downgrades Ratings of PMG Assurance Ltd.

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

The rating downgrades for PMG reflect the overall change in its parent company, Sony Corporation’s (Japan) credit risk profile. While PMG exhibits continued strong capital strength, its risk profile is compromised as a captive for Sony Corporation.

Over the last year, Sony Corporation’s credit risk profile has significantly decayed, which by the nature of PMG’s relationship, has resulted in these rating actions. The captive continues to be an integral component of Sony Corporation’s risk management platform. In A.M. Best’s opinion, the third party credit ratings as well as market based credit risk measures of Sony Corporation, indicates negative rating pressure on PMG.

Negative rating movement might occur to PMG’s ratings if there is any significant downward movement in Sony Corporation’s risk profile. Any upward rating movement to PMG’s ratings is predicated on improvement in Sony Corporation’s risk profile coupled with maintenance of the captive’s capital strength.

<p>A.M. 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.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Alternative Risk Transfer (ART)”; and “Understanding Universal BCAR.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.
Thomas Herriger, 908-439-2200, ext. 5375
Senior Financial Analyst
[email protected]
or
Steven Chirico, CPA, 908-439-2200, ext. 5087
Assistant Vice President
[email protected]
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Co.