Explicit support from parent Robust capitalization Conservative investment allocation Limited competitive position within the fragmented Singapore non-life insurance market The rating on Sompo Japan Insurance (Singapore) Pte. Ltd. (SJ Singapore) reflects the insurer's strategic importance to the Asia business of its parent, Sompo Japan Insurance Inc. (Sompo Japan; local currency AA-/Negative/--). SJ Singapore receives strong explicit support from Sompo Japan through a net worth maintenance agreement under which the parent will maintain a higher than minimum regulatory solvency and guarantee policyholders' liabilities. The rating also reflects SJ Singapore's satisfactory stand-alone financial profile, with robust capitalization and conservative investment allocation. The insurer's limited competitive position within Singapore's fragmented non-life insurance market tempers these strengths. SJ Singapore demonstrates its strategic importance to
