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/Negative/A-1+). The difficulties for Tokio Marine Newa to achieve a diversified business profile under Taiwan's highly competitive operating environment partly offset these strengths. Tokio Marine Newa's capitalization is strong on a risk-adjusted basis, and we expect the insurer to maintain its capitalization at a strong level over the next two to three years as its risks written are mostly in personal lines. Tokio Marine Newa's capitalization is also on a strong level based on Standard&Poor's capital
