The ratings on Tokio Marine Newa Insurance Co. Ltd. reflect the insurer's strong capitalization, above-average operating performance, and implicit support from the financially stronger Japan-based Tokio Marine group (whose core operating entity is Tokio Marine&Nichido Fire Insurance Co. Ltd.; AA/Stable/A-1+), which holds 48.9% of the company's shares. These strengths are moderated by the challenges Tokio Marine Newa faces to achieve satisfactory business growth and a strong investment profile. Tokio Marine Newa is strategically important to the Tokio Marine group's business development strategy for Asia. Tokio Marine Newa became the Tokio Marine group's sole insurance representative in Taiwan after organizational restructuring in April 2007, and is integral to the group's strategy of expanding its revenue sources beyond Japan. The
