KUALA LUMPUR, Oct 7 -- The Financial Strength Rating of A++ (superior) and the Long-Term Issuer Credit Ratings of ‘aa+’ of Tokio Marine & Nichido Fire Insurance Co Ltd (TMNF) Japan and its United States subsidiaries remain unchanged, with stable outlook.
AM Best, a global credit rating agency and information provider, has commented on these Credit Ratings following an acquisition announcement by their parent company, Tokio Marine Holdings Inc (TMH).
The comment follows the announcement that TMH has entered into a definitive agreement to acquire Privilege Underwriters Inc (PUI) and its subsidiaries, including PURE Risk Management LLC and PURE Insurance Company.
TMH will acquire PUI for US$3.1 billion, which will be financed through a combination of existing resources and potential subordinated bond issue. This transaction is expected to close in the first quarter next year, subject to regulatory approvals. (US$1 = RM4.19)
The acquisition is in line with Tokio Marine Group’s long-term strategy to expand the scale and profitability of its international business in developed and developing markets.
AM Best does not expect a material deterioration in TMNF’s consolidated risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, financial leverage or its liquidity on completion of the acquisition.
AM Best will closely monitor the progression of the acquisition and its impact on TMNF’s rating fundamentals. More information at http://www.ambest.com.
-- BERNAMA
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