...The rating on Sompo Insurance Singapore Pte. Ltd. (Sompo Singapore) reflects the insurer's status as a highly strategic subsidiary of Sompo Group (core subsidiaries rated A+/Stable/--). The rating on Sompo Singapore is one notch lower than the 'a+' group credit profile of Sompo Group to reflect this status. We believe the parent is highly unlikely to sell its interest in Sompo Singapore. Under the group's revised business model (since 2015), the Singapore subsidiary started operating as an underwriting agent for the head office, rather than as a reinsurance hub. Our assessment of Sompo Singapore's strategic importance to Sompo Group reflects our view that the company's structure and continued focus on local business are integral to the group's strategy. In 2016, Sompo Singapore repatriated about Singapore dollars (S$) 100 million to the parent due to excess capital at the subsidiary level following the change in its business model and its reduced focus on overseas business. Historically,...
