The 'A+' rating on Sompo Japan Insurance Co. (Asia) Pte. Ltd. (Sompo Japan Asia) was affirmed on Jan. 10, 2002. The rating reflects the company's strategic importance to its parent, Sompo Japan Insurance Inc., as well as explicit support from Sompo Japan in the form of a net worth maintenance agreement. The company's standalone operating performance has been volatile, namely in its Offshore Insurance Fund (OIF) business. Moreover, the company's higher-than-average expense ratio, coupled with the hardening of reinsurance rates, is expected to remain a drag on underwriting results. Supportive parent group. Sompo Japan's commitment to Sompo Japan Asia is evident through both explicit and implicit support, including a strong balance sheet and high level of operational integration. Sompo Japan
