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 over the next one to two years. We view the insurer has good control over its distribution channels, satisfactory operating efficiency, and prudent underwriting performance to support stable earnings over the same period. In addition, we expect Tokio Marine Newa to remain a strategically important entity to the parent Tokio Marine Group over the period. We may lower the ratings on Tokio Marine Newa if we lower our assessment of the company's stand-alone credit profile due to weaker operating performance or unexpected losses that materially weaken its capitalization over the next two

...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. Tokio Marine Newa's strong integration with the parent group in terms of operations, investment policy, and risk management, supports our view. Strong competitiveness in Taiwan's property and casualty (P/C or non-life) insurance market. Tokio Marine Newa is the fourth largest player by direct premiums written in Taiwan's P/C insurance market with a market share of 7.6% as of Sept. 30, 2024. The insurer benefits from the parent Tokio Marine Group's global insurance network as well as the expertise and franchise of Taiwan based Yulon Motor Group in the local auto sector. Capital redundancy to sustain under a severe stress scenario over the next two years. We forecast Tokio Marine Newa will maintain capital redundancy at a severe...

Full Report