OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed a financial strength rating of A++ (Superior) and an issuer credit rating of “aa+” of Tokio Millennium Re AG (TMR) (Switzerland). The outlook for both ratings is stable.
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 is domiciled in Switzerland.
The ratings reflect TMR’s superior financial strength, its solid 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 its parent, 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 markets, which is a part of the groups’ overall strategy for geographic diversification.
Tokio Marine Group has unified its global reinsurance brand under TMR over the past few years. TMR writes predominately property catastrophe and specialty reinsurance, but has been slowly expanding into casualty reinsurance and non-cat reinsurance in order to diversify its book of business. TMR also 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 adding more staff to enhance its 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 conservatism and certainty. Given the company’s higher catastrophe risk appetite, TMR has an extremely 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 its 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.
Key insurance criteria reports utilized:
• Risk Management and the Rating Process for Insurance Companies
• Understanding BCAR for Property/Casualty Insurers
• Understanding Universal BCAR
• Rating Members of Insurance Groups
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 visit A.M. Best’s Ratings & Criteria Center.
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