A statement today said Meiji Yasuda’s balance sheet strength assessment mainly reflects its risk-adjusted capitalisation being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).
This assessment is also supported by a large adjusted capital base which consists of reported capital, contingency reserves and price fluctuation reserves, as well as some equity credit for subordinated debt.
In addition, while balance sheet debt has grown, the company’s financial leverage ratios remain conservative, with adjusted debt leverage ratios generally under 25 per cent.
Meiji Yasuda’s operating performance has also remained consistently positive, generating ordinary profits in excess of 300 billion yen (1 yen = RM3.75) per annum on a consolidated basis in each of the last five years (fiscal-year ended from 2014-2018).
The stable outlook reflects AM Best’s expectation that Meiji Yasuda will maintain strong and consistent operating performance, supported by an in-force book that the global credit rating agency expects to generate favourable returns on embedded value and a stable economic solvency ratio over the medium and long term.
For more details, visit www.ambest.com.
-- BERNAMA
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