This report does not constitute a rating action. Overview Key strengths Key risks Sales channels and insurance products that take advantage of ties with parent and enable differentiation from peers High risk related to natural catastrophes and shareholdings Help from cancer insurance to mitigate earnings volatility of fire insurance, which bears natural catastrophe risk Higher expense ratio than large Japanese non-life insurers, given limited operations High likelihood of parent support if financial position weakens Although revisions of premium rates is progressing, the company's earnings remain susceptible to natural disasters. Equity risk is also likely to remain high in comparison with that of major nonlife insurers that sell policy-based stockholdings. The company?s underwriting of fire insurance had been somewhat restrained but
