The 'A+' rating on Sompo Japan Insurance Co. (Asia) Pte Ltd. (Sompo Japan Asia) reflects its strategic importance to its parent, Sompo Japan Insurance Inc. (Sompo Japan; AA-/Stable/--). The company benefits from strong explicit support from its parent in the form of a net worth maintenance agreement that is enforceable by policyholders. In addition, Sompo Japan Asia has a strong niche in the regional Japanese market, though this strength is counterbalanced by the volatility in its underwriting performance and a relatively high expense ratio. The rating reflects the following factors: Strong support and integration with parent. Sompo Japan's commitment to Sompo Japan Asia is evident through both explicit and implicit support, including a strong balance sheet and high level of
