KUALA LUMPUR, Sept 11 (Bernama) — AM Best has affirmed the financial strength rating (FSR) of A++ (Superior) and the long-term issuer credit ratings (Long-Term ICRs) of “aa+” (Superior) of Japan’s Tokio Marine & Nichido Fire Insurance Co Ltd (TMNF) and its subsidiaries.
In a statement, the global credit rating agency said the outlook of these credit ratings (ratings) is stable.
The ratings reflect TMNF’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management (ERM).
AM Best highlighted the company’s risk-adjusted capitalisation, measured by its Capital Adequacy Ratio, as a key strength, along with conservative financial leverage and ample capital buffers to absorb equity and underwriting volatility.
TMNF has accelerated its strategic equity disposal programme, targeting full disposal by fiscal year (FY) 2029, which is expected to materially reduce its overall equity risk exposure over the medium term.
In FY 2024, the company recorded 5.1 trillion Japanese yen in net premiums written (NPW), up from 3.4 trillion Japanese yen five years ago, while its consolidated return on equity averaged 10.3 per cent over five years. (100 Japanese yen = RM2.85)
TMNF’s international operations also delivered solid top-line growth and profits in FY 2024, with its North American business performing strongly, led by Tokio Marine Houston Casualty Group’s record profitability despite capital losses from United States commercial real estate loans.
The company’s ordinary profit surged to 1,161 billion Japanese yen in FY 2024, exceeding its strategic equity disposal target, benefitting from substantial realised capital gains. These proceeds are expected to further strengthen operating performance over the long term.
TMNF maintains a balanced domestic-international premium split, with over 25 per cent market share in Japan and continued disciplined expansion abroad. Its ERM framework is fully embedded and aligned with its global risk exposures.
— BERNAMA
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