A.M. Best Affirms Ratings of The Dai-ichi Life Insurance Company, Limited
January 27, 2016 by Best's News Service
Hong Kong – A.M. Best has affirmed the financial strength rating of A+ (Superior) and the issuer credit rating of “aa-” of The Dai-ichi Life Insurance Company, Limited (DL) (Japan). The outlook for both ratings is stable.
The ratings reflect DL’s robust level of risk-adjusted capitalization, strong business profile and its favorable operating performance.
DL has a plan to establish a holding company structure in October 2016 through a corporate split and transfer its domestic life insurance business to a new wholly owned subsidiary. The company’s capitalization is expected to remain supportive of the current ratings. In addition, DL’s financial leverage remains favorable with its strong liquidity position. DL has achieved a diversified business portfolio by actively managing its life operations through focusing on specific target markets, both domestically and overseas. In addition, the acquisition of the Protective Life Corporation in 2015 is expected to provide a growing contribution to the group’s earnings. The company’s risk management capabilities remain adequate to its wide scope of business, with extensive use of stress tests to cope with volatility.
Negative rating actions could occur if there is a material deterioration in the company’s capitalization, a sustained deterioration in its operating performance or diminished liquidity positions.
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activityweb page.
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