Standard & Poor’s Ratings Services announced that it has assigned its “AA-” insurer financial strength rating to UK-based Tokio Marine Global Ltd. (TMG) with a stable outlook.
“The rating on TMG is supported by a guarantee for insurance claims provided by its parent, Japan-based Tokio Marine & Nichido Fire Insurance Co. Ltd. (Tokio Marine; AA-/Stable/–), and its strategic importance in the Milea group’s business expansion strategy, particularly in reinsurance,” said S&P. “As a result, the rating on TMG is the same as that on its parent.”
The company plans to begin operations in January 2005 with an initial capitalization of £125 million ($242 million), providing mainly facultative reinsurance for corporate risks. S&P noted: “The insurer aims to ensure profitability from the first year and achieve net premiums written at over £100 million [$194 million) and pretax income at about £7 million [$13.6 million] in 2006.
“Given the intensifying competitive environment for facultative reinsurance business, TMG’s ability to underwrite appropriately relative to the risks that the insurer assumes is a key to ensure profitability.”
S&P said that the stable outlook on TMG reflects “the stable outlook on Tokio Marine, which has an extremely strong capital base and strong commitment to support its subsidiary. TMG is expected to maintain a strong financial profile given its intention to maintain conservative underwriting and investment policies, as at Tokio Marine’s other overseas reinsurance subsidiaries.”
Topics Reinsurance
Was this article valuable?
Here are more articles you may enjoy.
Progressive Now 4th Largest Global Insurer; RenRe Fastest Growing in ’24 
France Makes New Arrests in Louvre Heist; Jewels Still Not Found 
Starr Acquiring IQUW; Starr Managing Agency to Be Among 10 Largest at Lloyd’s 
AWS Outage a ‘Moderate Incident,’ Another Near Miss for Insurance Industry 
