Tokio Marine Newa Insurance Co. Ltd.

The positive outlook reflects our outlook on the core entity of the Japan-domiciled Tokio Marine group. The outlook also reflects our expectation that TM Newa will remain strategically important to the parent group in terms of profit contribution and will maintain a critical role in the group's Asia Pacific strategy. Therefore, the ratings on TM Newa will move in the same direction as our ratings on the core subsidiaries, which are capped by the sovereign rating on Japan. We may raise the ratings on TM Newa if the credit profile of Tokio Marine group improves, which may be lead by our rating upgrade on Japan. We may revise the outlook on TM Newa to stable if we revise the outlook

...We assess TM Newa has strong competitiveness in Taiwan's insurance market. We expect Tokio Marine Newa Insurance Co. Ltd. (TM Newa) to maintain its strong competitive advantage in the domestic market. The insurer's competitiveness benefits from its satisfactory operating efficiency, sound brand name associated with its financially stronger parent group, as well as good level of controlled distribution channels. We expect the insurer's underwriting performance to be slightly better than the domestic norm. Benefiting from its prudent expense control and satisfactory operating efficiency, TM Newa's expense ratio has been consistently lower than that of its industry peers over the last five years. We expect ratio to remain at a favorable level and eventually help the insurer to improve its underwriting performance to above the domestic peer average considering its prudent underwriting control. Capitalization is likely to remain a strength. Our risk-based capital model through which we measure...

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