On Oct. 23, 2006, Standard&Poor's Ratings Services affirmed its 'BBB+' insurer financial strength and counterparty credit ratings on Tokio Marine Newa Insurance Co. Ltd. (Tokio Marine Newa). The outlook is stable. The ratings reflect the company's strong capitalization, satisfactory operating performance, good position in auto insurance, as well as its close relationships with its two major shareholders--the Yulon group (Yulon) of Taiwan and Millea Holdings Inc. (Millea) of Japan. These factors are moderated by a lack of business diversity and limited experience in commercial lines. Tokio Marine Newa benefits from Yulon's distribution network, through which it derived 33% of its business in the first half of 2006. The company also leverages the resources of Millea to enhance its
