MEIJI YASUDA LIFE INSURANCE COMPANY CREDIT RATINGS AFFIRMED - AM BEST

KUALA LUMPUR, Jan 28 -- Global credit rating agency, AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of ‘aa-’ (Superior) of Meiji Yasuda Life Insurance Company (Meiji Yasuda) (Japan), with the outlook of these Credit Ratings (ratings) being stable.

According to a statement, the ratings reflect Meiji Yasuda’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.

Meiji Yasuda’s balance sheet strength assessment mainly reflects its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).

This assessment is also supported by the company’s low financial leverage, with an adjusted debt leverage ratio that is well below 25 per cent. The use of sophisticated and transparent economic-based indicators, including the economic solvency ratio and group surplus results, also allows the company to evaluate its risk-taking activities and capital on a timely basis.

Meiji Yasuda’s operating performance has been strong and consistent, supported by a stable premium income and base profit with low volatility in the past. For fiscal-year 2020 (FY2020), the company recorded a stable base profit of JPY 580 billion (US$5.5 billion) amid the COVID-19 pandemic. While the company’s new sales performance was adversely affected by the sales activities restriction in the first half of FY2020, its annualised premiums from new policies began to recover starting in the second half of FY2020. (US$1 = RM4.197)

A leading life insurance company in Japan, Meiji Yasuda continues maintaining a strong and effective agency channel and aims to diversify its distribution channels further to achieve revenue growth and strengthen profitability in its domestic market.

Its solid business relationships with regional government offices and private corporations continue to support its position as a market leader in group insurance business, and have modest geographical diversification with operations in the United States and other Asian countries.

The stable outlooks reflect the expectation that Meiji Yasuda will maintain its overall balance sheet strength, supported by risk-adjusted capitalisation at the strongest level, as measured by BCAR.

For more information, visit www.ambest.com.

-- BERNAMA