Tokio Marine Newa Insurance Co. Ltd.

The stable outlook reflects our view that TM Newa will maintain good control over its distribution channels, satisfactory operating efficiency, and prudent underwriting performance over the next one to two years. We also expect TM Newa's prudent risk-tolerance policies to help support a sufficient capital buffer, given our assessment of the insurer's excellent capital adequacy. In addition, we expect TM Newa to remain a strategically important entity to the wider parent group over the same period. We may lower the ratings on TM Newa if the parent group's capital deteriorates significantly with little prospect of recovery within two years. This could occur in the event of large losses from natural disasters or a prolonged global financial crisis. We may revise

...We assess TM Newa has strong competitiveness in Taiwan's property and casualty 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, and good level of controlled distribution channels. We expect the insurer's underwriting performance to be slightly better than the domestic norm. TM Newa's expense ratio has been consistently lower than that of its industry peers over the last five years supported by the insurer's prudent expense control and satisfactory operating efficiency. We expect TM Newa's expense advantage will keep its operating performance at a favorable level, despite the company's higher loss ratio in 2020 amid Covid-19. While the pandemic has not had a significant impact in Taiwan, more vehicle traffic within the island contributed to higher...

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