MS&AD Insurance Group's Core Subsidiaries

The stable outlooks on the core operating subsidiaries of MS&AD Insurance Group reflect 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 MS&AD Insurance Group will further diversify earning sources by strengthening its Japanese life insurance business and its overseas business. It also reflects our expectation that the group will maintain a capital level commensurate with our ratings. This is after incorporating the likelihood of the group making acquisitions in the coming two years into our analysis. We may lower our ratings on the group's core operating subsidiaries if we see a high likelihood that, contrary to our expectations, the group's prospective capital will deteriorate

...MS&AD Insurance Group will likely maintain its very strong competitive position, thanks to its solid presence in the domestic non-life insurance market, in S&P Global Ratings' view. The group has the largest share of Japan's non-life insurance market, backed by its well-established brand. It also operates in life insurance business, helping to diversify earnings sources. Furthermore, it has been geographically diversifying earnings through acquisitions and investments. However, the amount overseas business will contribute to overall earnings remains highly uncertain, in our view. We assume the group will likely continue to strive to improve the profitability of its domestic non-life insurance business. The profitability of its auto insurance, in addition to its fire insurance, has been declining in recent years, against the backdrop of increasing natural disasters and inflation. Therefore, the group has been making efforts to improve profitability by raising premium rates and providing...

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