S&P Global Ratings on 24 February revised Tokio Marine Newa Insurance Co. Ltd.’s outlook to positive from stable and affirmed its local currency long-term issuer credit and financial strength ratings at “A”, citing the subsidiary’s strategic importance to its parent and solid underwriting performance.
S&P said the outlook revision mirrors the action on its parent, Tokio Marine Group, adding that the Taiwan-based unit is important to the group’s Greater China strategy, well-integrated with other group members, and a significant profit contributor in the region.
The agency said another key stakeholder, Yulon Motor Group, supports sustainable development opportunities in the insurer’s auto line, with both parent groups collectively involved in major business decisions.
S&P said it expects Tokio Marine Newa to maintain a strong competitive position in Taiwan’s non-life segment through its niche in auto insurance and digital sales channels, while sustaining strong capital and earnings over the next one to two years on good underwriting, stable premium growth and steady investment returns.
S&P’s move is its latest in a series of outlook revisions from stable to positive on Tokio Marine this week, beginning with Tokio Marine Group’s core subsidiaries on 20 February, followed by Tokio Marine Insurance Singapore Ltd on 23 February.
