AM Best Affirms Credit Ratings of Tokio Marine Canada Ltd.
May 09 2024 - 4:51PM
Business Wire
AM Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of “a-”
(Excellent) of Tokio Marine Canada Ltd. (TMC) (Toronto, ON). The
outlook of these Credit Ratings (ratings) is stable.
The ratings reflect TMC’s balance sheet strength, which AM Best
assesses as very strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise
risk management (ERM).
The very strong balance sheet assessment reflects TMC’s
strongest level of risk-adjusted capitalization, as measured by
Best’s Capital Adequacy Ratio (BCAR), as well as ongoing support
from the parent, as needed. Additional positive rating factors
include financial flexibility, high-quality assets, a conservative
investment portfolio and reinsurance programs that are placed with
highly rated reinsurers. Conversely, AM Best views the execution
risks associated with start-up companies as a negative factor.
AM Best assesses TMC’s operating performance as adequate based
on the company’s results and projections. Additionally, AM Best
views the company’s business profile as limited given that TMC is a
start-up entity and also recognizes TMC’s ERM capabilities, which
benefit from the overall framework developed at the ultimate
parent’s level. Finally, the ratings consider implicit and explicit
support provided by Tokio Marine Holdings, Inc. (TMHD), and its
lead insurance operating company, Tokio Marine & Nichido Fire
Insurance Co., Ltd. (TMNF), and the affiliation between TMNF’s U.S.
subsidiaries. TMC aligns with TMHD’s strategy of expanding its
international business in developed and emerging markets, in
addition to providing diversification of revenues and customer
segments.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240509427350/en/
Thomas Keelan Financial Analyst +1 908 882
1925 thomas.keelan@ambest.com
Edin Imsirovic Director +1 908 882 1903
edin.imsirovic@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com