Secom General Insurance Co. Ltd.

We base our stable outlook on our view that Secom General will likely accumulate retained earnings within the next two years through continued growth of its MEDCOM cancer insurance business. In addition, we assume recently elevated effects of natural disasters are likely to return to normal. The outlook also incorporates our view that the insurer will maintain its strategic importance within the Secom group. We may consider lowering the ratings within the next two years if Secom General's prospective total adjusted capital (TAC) deteriorates. This could occur if its capital comes under pressure from large natural disasters or a sharp downturn in financial markets. Conversely, we may consider raising the ratings within the next two years if Secom General's TAC

...Strengths Risks Differentiation from peers through use of its parent's agency-led sales distribution channels and discounted insurance premiums bundled with its parent's security services A relatively large amount of risk related to natural catastrophes on property/casualty (P/C) insurance and market risk such as equity, which make capital and earnings vulnerable Solid sales of a unique medical insurance product, "MEDCOM," which supports diversification of its business line The small size of its business, which makes operating performance vulnerable to losses related to catastrophe and financial market volatility...

Full Report