AM BEST AFFIRMS JAPAN’S MITSUI SUMITOMO INSURANCE COMPANY, AFFILIATES CREDIT RATINGS

KUALA LUMPUR, June 10 (Bernama) -- Global credit rating agency, AM Best has affirmed Japan’s Mitsui Sumitomo Insurance Company Limited (MSI) financial strength rating (FSR) of A+ (Superior) and the long-term issuer credit rating (Long-Term ICR) of “aa” (Superior).

Concurrently, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa” (Superior) of MSI’s United States operating companies, which are domiciled in New York, namely, Mitsui Sumitomo Insurance Company of America, Mitsui Sumitomo Insurance USA Inc and MSIG Specialty Insurance USA Inc.

In addition, the credit rating agency has affirmed the FSR of A+ (Superior) and the Long-Term ICR of “aa” (Superior) of Japan’s Aioi Nissay Dowa Insurance Company Limited (ADI) and the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Aioi Nissay Dowa Insurance (China) Company Limited (ADIC).

According to AM Best in a statement, the outlook of all the aforementioned credit ratings (ratings) is stable, in which these companies are owned ultimately by MS&AD Insurance Group Holdings Inc (MS&AD), a major non-life insurance group based in Japan.

The ratings of MSI reflect the group’s balance sheet strength, which was assessed as strongest, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management (ERM).

The ratings also reflect the favourable impact of MS&AD as the ultimate parent, which has robust balance sheet strength that is supported by ample available capital, low financial leverage, and high level of financial flexibility, enabling MSI to have good access to capital and debt markets.

MSI remains a prominent insurer with a strong reputation in Japan’s highly consolidated non-life insurance sector, in which it continues to hold approximately one-fifth of the market share based on net premium written (NPW), along with its leading and stable market position.

Meanwhile, the ratings of ADI reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate ERM, on top of considering ADI’s strategic importance to its parent company, MS&AD, as one of its two core operating entities and integral role in the group.

Separately, the ratings of ADIC reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM, in addition to also reflecting the company’s strategic importance to its parent, ADI, as a key contributor of overseas business profit and a major component of ADI’s business expansion in China.

-- BERNAMA