...The rating on Sompo Insurance Singapore Pte. Ltd. (Sompo Singapore) reflects the insurer's important role to support the Japanese group's Asian strategy. We view Sompo Singapore as a highly strategic subsidiary of Sompo Group. The rating on Sompo Singapore is one notch lower than the 'a+' group credit profile of Sompo Group to reflect this status. We believe the parent is highly unlikely to sell its interest in Sompo Singapore. Our assessment of Sompo Singapore's strategic importance to Sompo Group reflects our view that the company's structure and continued focus on local business are integral to the group's strategy. Historically, the group has shown a strong commitment to support Sompo Singapore through a net-worth maintenance agreement and capital injections when required (such as post Thailand flood crisis). Sompo Singapore is closely linked to the group's name, reputation, and risk management, and is highly integrated with its parent through the group's Singapore-based regional office--Sompo...
