Tokio Marine Newa Insurance Co. Ltd.

We aim to resolve the CreditWatch placement after we have better clarity on TM Newa's near term capital restructuring plan, including the amount and timeline, as well as the loss development of its pandemic insurance policies over the next three months. We may lower the ratings on TM Newa by one or more notches if our assessment of the company's SACP weakens due to its deteriorating capital strength. Such weakening could result from unexpected larger losses on its pandemic policies or an insufficient capital plan to sustain capital adequacy at a fair level. Although less likely, we could lower the ratings by multiple notches if TM Newa cannot maintain its liquidity ratio above 100%, which would indicate that the insurer

...We view TM Newa as a strategically important subsidiary of the Tokio Marine Group. This reflects the insurer's important role in the group's Greater China strategy and Tokio Marine Newa Insurance Co. Ltd.'s (TM Newa) significant profit contribution in the region. We also see the company's strengthening integration with the group, which continues to provide capital and reinsurance resources to support the company's ongoing business growth. We assess the ratings on a strategically important subsidiary to be generally three notches higher than our assessment of its stand-alone credit profile (SACP) on S&P Global Ratings global rating scale. In our view, TM Newa has strong competitiveness in Taiwan's property and casualty (P/C or non-life) insurance market. We forecast TM Newa will 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...

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