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).