On Nov. 1, 2005, Standard & Poor's Ratings Services assigned its 'BBB+' long-term insurer financial strength and counterparty credit ratings to Tokio Marine Newa Insurance Co. Ltd. (Tokio Marine Newa). The outlook is stable. The ratings reflect the plentiful resources of its parent companies--Yulon Group (Yulon) of Taiwan and Millea Holdings, Inc. (Millea) of Japan--and its strong position in auto insurance. The ratings factor in the company's satisfactory operating performance and strong capitalization. These factors are moderated by the lack of diversity in the company's business profile, post-merger integration challenges, and growing pressure in Taiwan's increasingly competitive nonlife insurance market. Major Rating Factors Plentiful parental resources. Tokio Marine Newa was established on April 1, 2005, following a merger between Newa
