AM BEST AFFIRMS SOMPO JAPAN INSURANCE, ITS SUBSIDIARIES' CREDIT RATINGS

KUALA LUMPUR, Sept 22 (Bernama) -- AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” (Superior) of Sompo Japan Insurance Inc (SJ) and its subsidiaries.

In a statement, the global credit rating agency said SJ’s credit ratings, which have a stable outlook, reflected its balance sheet strength, which was assessed as strongest, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.

SJ’s balance sheet strength assessment reflects the company’s strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR) with the company’s financial leverage remains conservative with adjusted debt leverage ratios below 25 per cent, although it is higher compared to its domestic non-life peers in Japan.

It has a track record of strong operating performance, mainly supported by its consistent trend of growing premium income and a five-year average return-on-equity ratio of 7.3 per cent (fiscal year 2018 – 2022) on a consolidated basis, as calculated by AM Best.

SJ is the core operating unit of SOMPO Holdings Inc, (SOMPO Holdings), its ultimate parent and one of the largest non-life insurance groups in Japan.

The company maintains a leading market position with approximately a one-quarter share of Japan’s highly consolidated non-life insurance segment, in terms of net premiums written (NPW).

The stable outlooks reflect AM Best’s expectation that SJ will maintain its overall balance sheet strength assessment, supported by risk-adjusted capitalisation at the strongest level, as measured by BCAR, while ongoing strategic initiatives will help maintain its strong and consistent operating performance over the intermediate term.

Concurrently, the credit rating agency has affirmed the Long-Term ICR of “a-” (Excellent) of Sompo International Holdings Ltd (SIH) Pembroke, Bermuda.

In addition, the Long-Term Issue Credit Rating (Long-Term IR) of “a-” (Excellent) on US$335 million seven per cent senior unsecured notes due by 2034 (which is guaranteed by SIH), was also affirmed, with outlooks of these ratings are stable. (US$1=RM4.68)

-- BERNAMA