Research Update: Secom General Insurance Co. Ltd. 'A' Ratings Affirmed Following Revised Capital Model Criteria; Outlook Stable

On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see "Insurer Risk-Based Capital Adequacy--Methodology And Assumptions"). Based on our new criteria, we changed our assessment of Secom General's capital and earnings to very strong from strong, and revised up its stand-alone credit profile to 'bbb+' from 'bbb'. We affirmed our 'A' ratings on Secom General in consideration of our view of the likelihood of support for the group led by its parent Secom Co. The outlook remains stable. On April 25, 2024, S&P Global Ratings affirmed its 'A' long-term issuer credit and financial strength ratings on Secom General Insurance Co. Ltd. The outlook is stable. The implementation of our revised criteria for analyzing insurers' risk-based

...Key strengths Key risks Advantage of its ties with its parent, which differentiates the insurer from peers Large exposures to market risk and natural catastrophe risk relative to the size of its capital Increased sales of a cancer insurance product, contributing to diversification and stabilization of earnings base Higher expense ratio than peers, given the small size of its operation Likelihood of parent support if necessary...

Research Update