...November 19, 2019 TOKYO (S&P Global Ratings) Nov. 20, 2019--S&P Global Ratings today said the MS&AD group of insurance companies can tolerate an impairment loss booked at the MS Amlin business. MS&AD Insurance Group Holdings Inc. (unrated) announced on Nov. 19, 2019, an impairment loss of Ñ175.4 billion (Ñ160 billion after tax) from direct insurance business in Europe and Lloyd's business. We do not believe the impairment loss will be a negative factor in our evaluation of the MS&AD group's capital. The goodwill is already fully deducted in our calculation of total adjusted capital (TAC). Accordingly, MS Amlin's impairment loss does not affect the TAC of its group. Meanwhile, the group will reduce tax costs by Ñ170.5 billion in fiscal 2019 (ends March 31, 2020). We therefore expect the TAC of the MS&AD group to increase on a net basis over the course of the year. We see no need to push down our expectations of future profit from MS Amlin business at this point. The impairment loss stems...
