AM Best affirms credit ratings of Tokio Marine Pacific Insurance Ltd

KUALA LUMPUR, Oct 21 (Bernama) -- United States-headquartered AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of Guam’s Tokio Marine Pacific Insurance Ltd (TMPI).

With a stable outlook of these credit ratings, it reflects TMPI’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

According to a statement, the ratings also acknowledge the wide range of implicit and explicit support that TMPI receives from Tokio Marine & Nichido Fire Insurance Company, Ltd (TMNF), which is the main insurance operating entity of Tokio Marine Holdings Inc (TMH).

The global credit rating agency AM Best assesses TMPI’s risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio.

Although increased dividend payouts in recent years led to a slowdown in its capital growth, AM Best expects the company’s risk-adjusted capitalisation to remain comfortably at the strongest level over the medium term.

TMPI has a historical track record of generally positive and stable operating performance, although its underwriting margin remains thin due to its focus on the accident and health (A&H) segment and market competition.

The company reported favourable earnings in 2020 and 2021, driven by declined medical and auto claims amid the COVID-19 pandemic and various underwriting initiatives.

A wholly owned subsidiary of Tokio Marine North America and ultimately owned by TMH, one of Japan’s largest non-life insurance groups, TMPI has a strong presence in Guam’s non-life industry, underpinned by its dominant position in the A&H segment.

-- BERNAMA