A.M. Best Comments on Ratings of Sompo Japan Nipponkoa Insurance Inc. Following Sompo Japan Nipponkoa’s Announced Investment

HONG KONG--()--A.M. Best has commented that the financial strength rating of A+ (Superior) and the issuer credit rating of “aa-” of Sompo Japan Nipponkoa Insurance Inc. (Sompo Japan Nipponkoa) are unchanged following the announcement that it plans to invest in SCOR SE (SCOR) (France).

Sompo Japan Nipponkoa Holdings, Inc (SJNK) (Japan) announced on March 6, 2015 that Sompo Japan Nipponkoa, its main operating subsidiary, will acquire a 7.8% stake in SCOR and intends to further increase that stake to 15%.

Overall investment risk to equities is expected to remain within an acceptable level, as the company has reduced its exposure to the domestic equity market over the years. More recently, the company has made an effort to expand its earnings profile and diversify the risk profile both in investment and underwriting.

Sompo Japan Nipponkoa is a wholly owned subsidiary of SJNK, which is one of the major non-life insurance holding companies in Japan. SJNK Holdings was established as a joint holding company following the merger of Sompo Japan and NIPPONKOA Insurance Co., Ltd. (NIPPONKOA) in 2010.

The methodology used in determining these interactive 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:

• Catastrophe Analysis in A.M. Best Ratings

• Equity Credit for Hybrid Securities

• Rating Members of Insurance Groups

• Risk Management and the Rating Process for Insurance Companies

• Understanding Universal BCAR

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 visit A.M. Best’s Ratings & Criteria Center.

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 © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best Company
Seewon Oh, +852-2827-3404
Associate Director
seewon.oh@ambest.com
or
Moungmo Lee, +65-6589-8412
General Manager, Analytics
moungmo.lee@ambest.com
or
Christopher Sharkey, +(1) 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best Company
Seewon Oh, +852-2827-3404
Associate Director
seewon.oh@ambest.com
or
Moungmo Lee, +65-6589-8412
General Manager, Analytics
moungmo.lee@ambest.com
or
Christopher Sharkey, +(1) 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com