Parental support Established strong position in auto insurance Satisfactory operating performance Strong capitalization Lack of diversity in business profile Limited experience in commercial lines The ratings on Tokio Marine Newa Co. Ltd. (Tokio Marine Newa) reflect the company's strong capitalization, satisfactory operating performance, and good position in auto insurance, as well as its close relationship with its two major shareholders, the Yulon group (Yulon) of Taiwan and Millea Holdings Inc. (Millea) of Japan. These factors are moderated by a lack of business diversity and limited experience in commercial lines of insurance. Tokio Marine Newa benefits from Yulon's distribution network, from which it derived 33% of its business in the first half of 2006. The company also leverages the resources of
