AM Best has affirmed The Dai-ichi Life Insurance Company’s A+ (Superior) Financial Strength Rating and “aa-” (Superior) Long-Term Issuer Credit Rating, both with a stable outlook, concurrently withdrawing the ratings following the company’s request to no longer participate in the agency’s interactive rating process.
The ratings reflected Dai-ichi Life Holdings’ very strong balance sheet strength, strong operating performance, favourable business profile, and appropriate enterprise risk management. AM Best views the operating subsidiary as integral to the group, given its financial, operational, and strategic importance.
The group’s total reported capital decreased 10% year-over-year to JPY 3.5 trillion (US$23.3bn) as of 31 March 2025, primarily driven by lower net unrealised gains on securities. The group’s economic solvency ratio, calculated by its internal capital model, remained stable at above 200%.
AM Best assessed the group’s risk-adjusted capitalisation, measured by its Capital Adequacy Ratio, at the very strong level. The group has prudent asset-liability management practices in place to mitigate potential asset-liability mismatch risk, supported by effective asset allocation and reinsurance strategies.
Dai-ichi Life Holdings achieved consolidated premium income of JPY 68 trillion and fundamental profit of JPY 639bn for the fiscal year ending 31 March 2025. The group’s annualised premiums from new business grew 9%, driven by successful product launches at Dai-ichi Life and strong overseas performance at Protective Life Corporation and TAL Life Limited.
The group’s financial flexibility remains strong, supported by its access to equity and debt markets as a listed insurance group in Japan, while its financial leverage remains well managed under the group’s internal policy.
