AM Best affirms The Dai-ichi Life Insurance Company, Limited Credit Ratings

KUALA LUMPUR, Jan 23 -- AM Best has affirmed the Financial Strength Rating (FSR) of A+ (superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of ‘aa-’ of The Dai-ichi Life Insurance Company, Limited (DL) Japan.

The stable outlook of these Credit Ratings reflects DL’s balance sheet strength, which AM Best categorised as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.

DL’s very strong balance sheet strength assessment is supported by its risk-adjusted capitalisation that is at the strongest level, as measured by Best’s Capital Adequacy Ratio.

While the company has been gradually reducing its holdings, the concentration of common stock in its investment portfolio remains high, relative to its capital size, and this may expose the company to a certain degree of equity price risk.

DL’s operating performance over the most recent five-year period has been consistently positive with an average ordinary profit exceeding JPY 300 billion (US$2.7 billion). (US$1 = RM4.06)

DL is a wholly owned subsidiary of Dai-ichi Life Holdings Inc, one of Japan’s largest life insurance groups in terms of premium income, according to a statement.

The stable outlooks also reflect AM Best’s expectation that DL will maintain a strong and consistent operating performance, supported by an in-force book of business that is expected to generate positive core operating profit and a stable economic solvency ratio over the medium and long term.

More details at http://www.ambest.com.

-- BERNAMA