The ratings on Mitsui Sumitomo Insurance Co. Ltd. (MSI), formed through the merger of leading Japanese nonlife insurers Mitsui Marine&Fire Insurance Co. Ltd. and Sumitomo Marine&Fire Insurance Co. Ltd., are based on an excellent market position it inherited from the merger, and the new company's solid financial profile, characterized by very strong capitalization and good quality assets. Moderating factors include the competitive environment of the Japanese nonlife sector, and some uncertainties over the success of the merger given the accelerating consolidations of other major peers in the sector. Excellent business position. Combining the excellent business position and market franchise of both Mitsui Marine and Sumitomo Marine, MSI is currently the second-largest nonlife insurer in Japan behind
