Secom General Insurance Co. Ltd.

The stable outlook reflects our view that Secom General will maintain a healthy capital level over the next two years, underpinned by stable profit contributions from the MEDCOM business. It also incorporates our view that the insurer will maintain strategic importance within the Secom group. We may lower the ratings if Secom General's capital level deteriorates significantly because of, for example, large natural disasters, financial turmoil, or aggressive shareholder rewards. We may raise the ratings if both of the following scenarios look likely to occur. However, the likelihood of an upgrade within the next two years is remote, in our view. Creditworthiness of the insurer's parent, Secom Co. Ltd., has improved in our assessment; and We revise Secom General's stand-alone

...Key strengths Key risks Sales channels and insurance products by taking advantage of its ties with its parent, which makes differentiation from peers Vulnerability of capital and earnings because of large exposures to market risk and natural catastrophe risk relative to its business size Increased sales of a cancer insurance product, contributing to diversification and stabilization of earnings base Higher expense ratio than peers, given the small size of its operation High likelihood of parent's support in the case of weakening of financial position...

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