Explicit support from parent Robust capitalization Strong but slightly weakened operating performance Conservative investment allocation Limited competitive position within fragmented Singapore non-life insurance market The rating on Sompo Japan Insurance (Singapore) Pte. Ltd. (SJ Singapore) reflects the company's strategic importance to the business strategy in Asia of its parent, Sompo Japan Insurance Inc. (Sompo Japan; AA-/Stable/--). The insurer receives strong explicit support from Sompo Japan through a net worth maintenance agreement under which the parent guarantees policyholders' liabilities. The ratings also reflect the company's satisfactory standalone financial profile, characterized by robust capitalization, a strong but slightly weakened financial performance, and conservative investment allocation. These strengths are tempered by SJ Singapore's limited competitive position within Singapore's fragmented nonlife insurance market. The
