MS&AD Insurance Group's Core Subsidiaries

The stable outlook reflects our view that MS&AD Insurance Group will further diversify earnings by strengthening its Japanese life insurance business and its overseas business. It also reflects our view that it will retain a solid position in the Japanese non-life insurance market for the next two years. In addition, we believe the group's capital adequacy will gradually recover to a level commensurate with our current assessment, thanks to an accumulation of retained earnings and risk reduction. We may lower the ratings on the core operating subsidiaries of MS&AD Insurance Group if we see a high likelihood that, contrary to our expectations, the group's prospective capital based on our capital model will deteriorate significantly and for a prolonged period. This

...MS&AD Insurance Group is likely to maintain strong competitive position, backed by its solid market position in Japan, in our view. We consider that the group's well-established brand, leading position in Japan's non-life insurance market, and well-diversified earnings sources from domestic life insurance business will continue to be strengths for our assessment of its group credit profile (GCP). It has been diversifying its earnings sources geographically through acquisitions and investments as it works to increase the proportion of its business done outside of Japan. However, its overseas business is not yet making full contributions to overall profits. This is because the group has occasionally incurred unexpected losses from overseas business, such as an impairment loss related to the MS Amlin business. The group's profitability is under downward pressure because of damage related to extreme weather in Japan.A series of devastating typhoons that hit Japan in 2019 followed similar extreme...

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