Tokio Marine Pacific Insurance Limited credit ratings affirmed - AM Best

 KUALA LUMPUR, Oct 12 -- AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of ‘aa-’ of Tokio Marine Pacific Insurance Limited (TMPI) Guam.

In a statement, AM Best said the outlook of these ratings was negative.

The ratings reflect TMPI’s balance sheet strength, which AM Best categorised as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The ratings also acknowledge the wide range of implicit and explicit support that TMPI receives from its parent, Tokio Marine & Nichido Fire Insurance Co Ltd (TMNF).

TMPI’s risk-adjusted capitalisation remained at the strongest level last year, as measured by Best’s Capital Adequacy Ratio.

The balance sheet strength assessment is also underpinned by the company’s high quality assets and a conservative investment strategy.

Its net underwriting leverage remains relatively high; however, the group accident and health business, which accounts for over 90 per cent of TMPI’s underwriting portfolio, is considered to have low potential for volatility in general.

TMPI reported a large net loss in 2019, mainly driven by the deteriorated profitability in its key business account, the Guam government’s health plan.

In addition, AM Best also notes the execution risk over the company’s growth plan to restore its premium base without increasing potential bottom-line volatility.

TMPI is a wholly owned subsidiary of TMNF and its ultimate parent, Tokio Marine Holdings Inc, is one of the largest Japanese non-life insurance groups.

-- BERNAMA