MS&AD Insurance Group's Core Subsidiaries

S&P Global Ratings acknowledges a high degree of uncertainty about the evolution of the coronavirus pandemic. The consensus among health experts is that the pandemic may now be at, or near, its peak in some regions but will remain a threat until a vaccine or effective treatment is widely available, which may not occur until the second half of 2021. We are using this assumption in assessing the economic and credit implications associated with the pandemic (see our research here: www.spglobal.com/ratings). As the situation evolves, we will update our assumptions and estimates accordingly. The stable outlook reflects our view that MS&AD Insurance Group will maintain capital adequacy at a level commensurate with our current assessment by accumulating earnings and reducing

...MS&AD Insurance Group is likely to maintain a strong competitive position, backed by its solid market presence 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 primarily because the group has occasionally incurred unexpected losses from overseas business, such as an impairment loss related to the MS Amlin business, which has seen lower profitability than assumed at the time of its acquisition. The group's profitability is under downward pressure because of damage related to two consecutive...

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