Strengthened support and integration with parent. Strong franchise in its Japanese clientele niche in Singapore. Well-capitalized balance sheet. Conservative investment policy with low investment volatility. Modest market position and size resulting in volatile technical performance. The rating on Sompo Japan Insurance Co. (Asia) Pte. Ltd. (Sompo Japan Asia, the company) 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.
