PGA Sompo Insurance Corporation earned “Good” ratings on two aspects of its operations from global rating agency AM Best, which focuses on the insurance industry worldwide.
The favorable outlook comes as PGA Sompo, one of the biggest and fastest-growing non-life insurance corporations in the country, vows its continued support to the Philippine economy.
AM Best has assigned a Financial Strength Rating of B+ (Good) and a Long-Term Issuer Credit Rating (ICR) of “bbb-” (Good) to PGA Sompo, with the outlook assigned to the ratings as “stable.”
AM Best, which announced the rankings in June, explained the ratings reflect PGA Sompo’s balance sheet strength, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The global ratings agency cited PGA Sompo’s position as “strong.”
AM Best added PGA Sompo’s balance sheet strength is underpinned by its risk-adjusted capitalization being categorized at the strongest level, as measured by AM Best’s Capital Adequacy Ratio. Other favorable balance sheet considerations include PGA Sompo’s affiliation with Sompo Japan Nipponkoa Insurance, Inc. (SJNK).
The favorable ratings PGA Sompo received from AM Best marks another milestone for the company as it continues to gain forward momentum under the leadership of PGA Sompo Chairman Robert Coyiuto Jr.
PGA Sompo President and CEO Fumihiko Harada called the ratings it earned from AM Best as a “proud achievement that validates the financial strength and credit worthiness of PGA Sompo.”
“Definitely, the high rating lends prestige to our company as we continue to expand our business partnerships for both corporations and government organizations,” Mr. Harada said.
Besides its latest distinction, PGA Sompo will soon be announcing new products.
“We are currently in good shape as we continue to grow this year. In 2018, PGA Sompo enjoyed 18% business growth with the industry’s overall market growth of 7%. This year, we are enjoying the same rate of increase in our sales and expansion of services, making PGA Sompo one of the fastest growing companies in the industry today,” Mr. Harada said.
A “Good” AM Best ICR rating indicates a company’s ability to meet its ongoing senior financial obligations.
Mr.. Harada attributed PGA Sompo’s vibrant movement to its longtime corporate clients, as well as from the Philippine government’s “Build, Build, Build” flagship infrastructure projects. In addition, PGA Sompo maintains its agility and buoyancy by initiating new products and services.
“While we put a premium on our tried-and-tested traditional services, we also try to put some leverage in new products as well, the latest of which includes small property policies and travel insurance that we are now pushing online. Hopefully, there are a few more products waiting for the approval of the Insurance Commission that we are set to launch once it has been stamped by the government body,” Mr. Harada said.
“One of our missions is to support the economy in the same way that Japan has committed to supporting the Philippines by way of investments and infrastructures. Similarly, PGA Sompo aims to support local clients to help their businesses grow by way of launching new products that are relevant to their needs as clients. These are exciting times for the country as the economy continues to enjoy growth,” Mr. Harada said.
PGA Sompo, established in 1991 as a joint venture between industry leaders Prudential Guarantee and Assurance, Inc. and SJNK, brought a positive impact in the local insurance industry as the two companies’ expertise and insights opened the doors for new markets and diverse innovative products.
SJNK, founded in 1887, is the first property insurance company in Japan, as well as one of the largest Property and Casualty (P&C) insurance companies in the country. Sompo literally translates to “non-life insurance” in Japanese.
The alliance between Prudential Guarantee and Assurance, Inc. and SJNK is recognized as a breakthrough partnership in the domestic insurance industry as it combined the best of both worlds: Prudential Guarantee’s steadfast growth in the country and Sompo’ centuries-old heritage and broad international coverage.
SJNK has operations in 218 cities in 30 countries and regions. It commands around 27% of the market share in Japan. Sompo’s non-life premium size is more than 14 times bigger than the entire non-life insurance market in the Philippines. Its group philosophy is “Contributing to the security, health and wellbeing of our customers and society as a whole by providing insurance and related services of the highest quality possible.” This is aligned with the quest for excellence that is one of the core values upheld by Prudential Guarantee.
Celebrating almost 30 years of business success brought by the strong partnership between Prudential Guarantee and Sompo Holdings, PGA Sompo advocates risk prevention and management through insurance products covering wellness to home, car and travel concerns, to name a few.