The ratings on Tokio Marine Newa Insurance Co. Ltd. (Tokio Marine Newa) reflect the plentiful resources of its parent companies--the Yulon group (Yulon) of Taiwan and Millea Holdings Inc. (Millea) of Japan--and its strong position in auto insurance. The ratings factor in the company's satisfactory operating performance and strong capitalization. These factors are moderated by a lack of diversity in the company's business profile, post-merger integration challenges, and growing pressure in Taiwan's increasingly competitive nonlife insurance market. Tokio Marine Newa was established on April 1, 2005, following a merger between Newa Insurance Co. Ltd. and an insurance company formerly known as Allianz President General Insurance Co. Ltd. prior to its acquisition by Millea Asia Pte. Ltd. (Millea Asia) in August
