Wednesday 8 February 2023

AM Best affirms credit ratings of Japan’s Meiji Yasuda

KUALA LUMPUR, Feb 7 (Bernama) -- AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of Japan’s Meiji Yasuda Life Insurance Company (Meiji Yasuda).

In a statement, AM Best said the outlook of these credit ratings (ratings) was stable.

The ratings reflect Meiji Yasuda’s balance sheet strength, which AM Best assessed 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) also is supported by the company’s low financial leverage, with an adjusted debt leverage ratio that is well below 25 per cent.

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

The company’s stable in-force business and diversified products portfolio are also expected to support its consistent operating performance over the intermediate term.

Meiji Yasuda has a track record of a consistently strong operating performance, mainly supported by a stable trend of base profit and a five-year average return-on-equity of 6.2 per cent (fiscal years 2017-2021), as calculated based on comprehensive income.

Meiji Yasuda is one of Japan's leading life insurance companies that continues to maintain 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.

-- BERNAMA

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