Secom General Insurance Co. Ltd.

S&P Global Ratings acknowledges a high degree of uncertainty about the evolution of the coronavirus pandemic. The consensus among health experts is that the pandemic may now be at, or near, its peak in some regions but will remain a threat until a vaccine or effective treatment is widely available, which may not occur until the second half of 2021. We are using this assumption in assessing the economic and credit implications associated with the pandemic (see our research here: www.spglobal.com/ratings). As the situation evolves, we will update our assumptions and estimates accordingly. The stable outlook reflects our view that Secom General will gradually accumulate the retained earnings within next 24 months through continued growth of its MEDCOM cancer insurance

...Key strengths Key risks Differentiation from peers through use of its parent's agency-led sales distribution channels and the bundling of discounted insurance premiums 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 lines The small size of its business, which makes expense ratio higher than the peers...

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