S&P Sees Limited Impact from Tokio, Nichido Merger

March 31, 2003

Standard & Poor’s Ratings Services has issued a statement indicating that “the merger plan between Tokio Marine & Fire Insurance Co Ltd. (AA-/Negative/–) and Nichido Fire & Marine Insurance Co LTD (AA-/Negative/–) would have a limited impact on its ratings on the companies.”

The Millea Group, which comprises Tokio Marine and Nichido Fire, following their merger last April, announced on Friday that they would merge into a single entity in October 2004. (See IJ Website March 28). S&P noted that they had already begun to consolidate “their products, administration, and computer systems to establish a shared infrastructure.”

“The merger will expand the scope of integration and may enhance operational efficiency, which has already been incorporated in the ratings on the companies to some extent,” S&P concluded.

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