The ratings on Tokio Marine Newa Insurance Co. Ltd. reflect the insurer's very strong capitalization, above-average operating performance, strong market position with a niche share in motor insurance business, 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+). Nonetheless, the obstacles that Tokio Marine Newa faces to achieve a strong investment profile amid high financial market volatility, partly offset the above strengths. In our view, Tokio Marine Newa is likely to maintain very strong capitalization over the next two to three years, underpinned by its good underwriting quality and prudent asset allocation. Based on our capital model the insurer's capitalization is at a strong
