Strong support and integration with parent. Strong franchise in its Japanese clientele niche in Singapore. Stable balance sheet with low investment volatility. Conservative investment policy. Volatile technical performance. 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-/Stable/--). The company benefits from strong explicit support from its parent in the form of a net worth maintenance agreement that is enforceable by policyholders. In addition, Sompo Japan Asia has a strong niche in the regional Japanese market, though this strength is counterbalanced by the volatility in its underwriting performance and a relatively high expense ratio. The rating reflects the following factors: Strong support and
