|[December 20, 2013]
A.M. Best Affirms Ratings of Tokio Millennium Re AG
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating of A++
(Superior) and issuer credit rating of "aa+" of Tokio Millennium Re
AG (TMR) (Switzerland). The outlook for both ratings is
TMR is a wholly owned subsidiary of Tokio Marine & Nichido Fire
Insurance Co., Ltd. (TMNF), which is the main trading subsidiary of Tokio
Marine Holdings, Inc. (Tokio Marine Group). Both companies are
domiciled in Tokyo, Japan. TMR re-domesticated to Switzerland from
Hamilton, Bermuda on October 15, 2013
The ratings reflect TMR's superior financial strength, its effective
risk management, favorable historical operating performance and its very
strong risk adjusted capital position. In addition TMR benefits from the
global recognition and balance sheet strength of TMNF, as well as the
implicit and explicit support provided by TMNF. The ratings also
consider the key role that TMR plays in transferring and accepting
extreme risks in the international reinsurance market, which is a part
of the overall groups' strategy of geographic diversification.
Tokio Marine Group has unified its global reinsurance brand under TMR
over the past few years. TMR predominately wries property catastrophe
and specialty reinsurance and has been slowly expanding into casualty
reinsurance since mid-2011 to diversify its book of business. TMR
continues to be a leader in transforming and transferring reinsurance
risk to the capital markets through its Tokio Solution Management Ltd.
and Shima Re subsidiaries.
TMR continues to innovate and improve its already strong ERM platform by
continuing to add more staff to enhance the overall risk ownership by
each business unit. TMR's property catastrophe modeling uses multiple
commercial models as well as proprietary models, which have both a
scientific and quantitative focus. This multi model approach allows TMR
to assume risks that it can identify and model with a high degree of
certainty. Effective ERM was evidenced by TMR's limited losses from
Superstorm Sandy, even with exposure to the storm in their book of
business. Given the higher catastrophe risk that is taken, TMR has a
more conservative asset strategy in place.
Partially offsetting these positive rating factors are TMR's exposure to
low frequency, high severity catastrophic events, growth into newer
markets through it branches as well as diversification into casualty
lines of business.
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best's rating process and contains the different rating criteria
employed in the rating process. Best's Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS
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