The ratings on Mitsui Sumitomo Insurance Co. Ltd. (MSI; A+/Stable/A-1) reflect its position as a core operating entity of MS&AD Insurance Group, a very strong market position in both commercial and individual insurance, and an expanding overseas business, especially in Asia. At the same time, the ratings are constrained by its weaker profitability than international peers, the vulnerability of its capital to stock price fluctuations, and continued difficulties in the domestic business environment, such as limited growth potential and intense competition. MSI is one of the core operating subsidiaries of MS&AD Insurance Group, which was established through the business integration of Mitsui Sumitomo Insurance Group, Aioi Insurance Co. Ltd., and Nissay Dowa General Insurance Co. Ltd. on April 1, 2010.
