The ratings on Tokio Marine Newa Co. Ltd. (Tokio Marine Newa) reflect the company's strong capitalization, satisfactory operating performance, and good position in auto insurance, as well as its close relationship with its two major shareholders, the Yulon group (Yulon) of Taiwan and Millea Holdings Inc. (Millea) of Japan. These factors are moderated by a lack of business diversity and limited experience in commercial lines of insurance. Tokio Marine Newa benefits from Yulon's distribution network, from which it derived 33% of its business in the first half of 2006. The company also leverages the resources of Millea to enhance its product development, underwriting controls, and reinsurance capacity. Yulon, which owns 51.1% of Tokio Marine Newa, is the largest auto manufacturing
