Mitsui Sumitomo Insurance's Proposed Perpetual Subordinated Notes Rated 'A-'; Issuer Ratings Affirmed, Outlook Stable

We assess the equity content of the U.S.-dollar-denominated perpetual subordinated notes that Mitsui Sumitomo Insurance plans to issue in March 2019 as intermediate given their characteristics such as subordination and optional interest deferral. We regard the issuance as a positive factor in our assessment of MS&AD Insurance Group's capital. Our assessment of the group's capital and earnings is likely to be unchanged at strong because of the heavy pressure exerted by a string of natural disasters in Japan in fiscal 2018 (ending March 31, 2019) and the group's aggressive investments in overseas businesses. We have assigned our 'A-' issue rating to the proposed notes. We are affirming the 'A+' financial strength and long-term issuer credit ratings on the core and

...+ We assess the equity content of the U.S.-dollar-denominated perpetual subordinated notes that Mitsui Sumitomo Insurance plans to issue in March 2019 as intermediate given their characteristics such as subordination and optional interest deferral. + We regard the issuance as a positive factor in our assessment of MS&AD Insurance Group's capital. Our assessment of the group's capital and earnings is likely to be unchanged at strong because of the heavy pressure exerted by a string of natural disasters in Japan in fiscal 2018 (ending March 31, 2019) and the group's aggressive investments in overseas businesses. + We have assigned our 'A-' issue rating to the proposed notes. + We are affirming the 'A+' financial strength and long-term issuer credit ratings on the core and other subsidiaries of MS&AD Insurance Group. + The outlook remains stable because we believe the group will maintain a very strong competitive position, and maintain strong potential for growth in its domestic life insurance...

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