The rating on Sompo Japan Insurance Co. (Asia) Pte Ltd. (Sompo Japan Asia) reflects its strategic importance to its parent, Sompo Japan Insurance Inc. (Sompo Japan; AA-/Negative/--). The company benefits from explicit strong support from its parent in the form of a net worth maintenance agreement that is enforceable by policyholders. However, Sompo Japan Asia's standalone operating performance has been relatively volatile, namely in its Offshore Insurance Fund (OIF) business. Moreover, the company's above-industry-average expense ratio is expected to remain a drag on underwriting result, although the ratio is influenced by its concentration of Japanese line of business. Strong support and integration with parent: Sompo Japan's commitment to Sompo Japan Asia is evident through both explicit and implicit support, including
