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18th of May 2012

Sony’s captive rating affirmed

Vicky Beckett 24/01/2012

Sony’s captive had its ratings affirmed with a financial strength rating of A (excellent) and issuer credit rating of "a".
 
The Bermudian captive PMG Assurance was informed the outlook for both ratings is stable.

PMG was awarded for excellent capitalisation, historically strong operating performance and strategic position as the captive insurance company for Sony Group (Sony).

 
This is partially counterbalanced by PMG's exposure to potentially large natural catastrophe losses.

PMG is responsible for meeting Sony’s global insurance requirements.

 
PMG excels in its underwriting focus, long-standing customer relationships and conservative operating strategy.
 
PMG has benefited from rate increases, however, the company experienced several catastrophe-related incidents in 2011 that had a significant impact on its capitalisation.
 
Sony’s captive withstood this at the current rating level, and management has assured AM Best of Sony's commitment to preserving prudent capital levels.

PMG could be given a more negative rating if its capitalisation does not support its current rating.

 
A higher rating movement is also achievable if Sony’s overall risk profile improves in the near term.

Tags: AM Best, Bermuda, Capital, Capitalisation, Captive, Catastrophe, Financial, Operating strategy, Rating, Sony

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PMG Assurance - AMB Rating 25/01/2012 1:42am

FYI

Best regards,

Eiji

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