KUALA LUMPUR, Sept 29 (Bernama) -- AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” (Superior) of Japan’s Tokio Marine & Nichido Fire Insurance Co Ltd (TMNF) and its United States subsidiaries.
According to the global credit rating agency in a statement, the outlook of these credit ratings (ratings) is stable.
Meanwhile, the FSR of A++ (Superior) and the Long-Term ICRs of “aa+” (Superior), each with a stable outlook, have been affirmed for Tokio Marine America Insurance Company; Trans Pacific Insurance Company; TM Specialty Insurance Company; and TNUS Insurance Company.
The ratings reflect TMNF’s balance sheet strength, which AM Best assessed as strongest, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management (ERM).
The company’s balance sheet strength assessment reflects its risk-adjusted capitalisation that is at the strongest level, as measured by Best’s Capital Adequacy Ratio and it has a robust absolute capital base and very conservative financial leverage.
It has a track record of consistent premium growth and a robust bottom line, supported by its diversified business portfolios and a five-year average return on equity of 5.4 per cent (fiscal year 2018 – 2022) on a consolidated basis, as calculated by AM Best.
Although net profit is subjected to volatility from natural catastrophe losses in Japan, TMNF’s domestic non-life business has maintained a consistently profitable underwriting performance over the same period.
The company continues to have a sophisticated ERM framework that is embedded throughout its organisation and AM Best believed that TMNF’s ERM programme is very effective in managing its group-wide exposure to potential earnings and capital volatility.
-- BERNAMA
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