Tokio Marine Newa Insurance Co. Ltd.

The stable rating outlook reflects our view that Tokio Marine Newa will maintain its financial strength through enhanced risk management, a prudent investment strategy, and steady earnings retention. We assess the insurer has good control over its distribution channels, satisfactory operating efficiency, and prudent underwriting performance to support a stable earnings performance over the next one to two years. In addition, we believe Tokio Marine Newa will remain a strategically important entity to the parent Tokio Marine Group over the same period. We may lower the ratings on Tokio Marine Newa if we lower our assessment of the company's stand-alone credit profile over the next two years. This could occur due to overly aggressive investment allocation or weaker operating performance

...We view Tokio Marine 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 significant profit contribution in the region. In addition, we acknowledge the company's strengthening integration with the group, which continues to provide capital and reinsurance resources to support Tokio Marine Newa's ongoing business growth. Tokio Marine Newa has strong competitiveness in Taiwan's property and casualty (P/C or non-life) insurance market. We forecast Tokio Marine 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 group, and good level of controlled distribution channels. Capital size is small by peer comparison, albeit its capital adequacy is likely to reach strong by 2025. Tokio Marine...

Full Report