Japan's Secom General Insurance Downgraded To 'A-' On Natural Disaster Losses; Placed On CreditWatch Negative

Secom General, a Japan-based insurer, announced that it forecasts a net loss for fiscal 2018 due to a series of natural disasters in the first half of the year. In addition, the insurer also expects to reverse catastrophe reserves. As a result, we view that the insurer's accumulation of retained earnings is likely to be much lower than we expected. We are lowering our financial strength and issuer credit ratings on Secom General to 'A-' from 'A'. We are placing the ratings on CreditWatch with negative implications, while we further analyze the impact of the natural disasters on the insurer. TOKYO (S&P Global Ratings) Dec. 6, 2018--S&P Global Ratings today said it has lowered its long-term financial strength and issuer

...+ Secom General, a Japan-based insurer, announced that it forecasts a net loss for fiscal 2018 due to a series of natural disasters in the first half of the year. + In addition, the insurer also expects to reverse catastrophe reserves. As a result, we view that the insurer's accumulation of retained earnings is likely to be much lower than we expected. + We are lowering our financial strength and issuer credit ratings on Secom General to 'A-' from 'A'. + We are placing the ratings on CreditWatch with negative implications, while we further analyze the impact of the natural disasters on the insurer. TOKYO (S&P Global Ratings) Dec. 6, 2018--S&P Global Ratings today said it has lowered its long-term financial strength and issuer credit ratings on Japan-bas ed Secom General Insurance Co. Ltd. (Secom General) to 'A-' from 'A'. We have also placed the ratings on CreditWatch with negative implications. The downgrade and CreditWatch placement are based our view that Secom General's capital adequacy...

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