AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit 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 assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM). The company also receives rating enhancement provided by its ultimate parent, Sony Group Corporation (Sony) (NYSE:SONY).

The ratings reflect PMG's risk-adjusted capitalization being at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), while maintaining its excellent liquidity, low underwriting leverage and conservative investment strategy in support of the very strong balance sheet strength assessment. Strong operating performance reflects PMG's consistent results in its combined and operating ratios that continue to outperform industry averages, stemming from favorable underwriting results and profitability with a low underwriting expense structure. While the captive insurer is susceptible to volatility in earnings due to the low frequency and high severity losses for the risks it insures, PMG has a comprehensive reinsurance program in place for all coverage provided to its parent to mitigate exposures. PMG writes commercial property, marine, directors and officers, cyber risk and previously employee benefits insurance for Sony and its affiliates.

The ratings also benefit from PMG's strategic role as Sony's only captive insurance company. As an integral component of Sony's ERM, PMG's role is to meet the global insurance requirements of the parent while also providing risk management services to Sony group members. PMG exhibits strengths that are derived from its keen underwriting expertise and emphasis on risk management controls, which are well-integrated with those of its parent.

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 use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

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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Luke Davies

Financial Analyst

+1 908 882 2467

luke.davies@ambest.com

Sharon Marks

Director

+1 908 882 2092

sharon.marks@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

AM Best Affirms Credit Ratings of PMG Assurance Ltd.