A.M. Best Affirms Ratings of First Insurance Company of Hawaii, Ltd. and Its Subsidiaries

OLDWICK, N.J.--()--A.M. Best has affirmed the financial strength rating (FSR) of A+ (Superior) and the issuer credit ratings (ICR) of “aa” of First Insurance Company of Hawaii, Ltd. (FICOH) (Honolulu, HI) and its reinsured subsidiaries, collectively referred to as First of Hawaii Group. The outlook for these ratings is stable. (See below for a detailed listing of the companies and ratings).

The ratings reflect the group’s strong risk-adjusted capital position, underwriting and operating results favorable to its peers, continuing overall profitability and supportive reserve positions. Additional supporting factors include the depth and breadth of enterprise risk management programs and policies, along with judicious use of reinsurance to mitigate the exposure to large losses. Also supporting the ratings is the group’s unique role within Tokio Marine Holdings, Inc. (TMHD) (Tokyo, Japan) and its 100% ownership by Tokio Marine North America, Inc., an insurance holding company subsidiary of Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF) (Tokyo, Japan). This considers operational and financial support provided by TMNF.

These positive rating factors are partially offset by the group’s concentration of risk as a single state insurer as it relates to legislative, judicial, regulatory, and economic conditions. In addition, the group has exposures to potential natural catastrophe and terrorism losses.

Positive rating action in the near term is unlikely. Factors that may lead to a negative rating action include a significant decline in operating performance or loss of risk-adjusted capital from a significant catastrophic loss.

Furthermore, any changes in the rating of the ultimate parent or its commitment to support the operations of FICOH, will affect the ratings directly.

The FSR of A+ (Superior) and the ICRs of “aa” have been affirmed for First Insurance Company of Hawaii, Ltd. and its following reinsured subsidiaries:

  • First Fire and Casualty Insurance of Hawaii, Inc.
  • First Indemnity Insurance of Hawaii, Inc.
  • First Security Insurance of Hawaii, Inc.

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:

  • Rating Members of Insurance Groups
  • Risk Management and the Rating Process for Insurance Companies
  • Understanding BCAR for Property/Casualty Insurers

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
Robert Raber, 908-439-2200, ext. 5696
Senior Financial Analyst
robert.raber@ambest.com
or
Henry Witmer, CPCU, ARM-E, 908-439-2200, ext. 5097
Assistant Vice President
henry.witmer@ambest.com
or
Christopher Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Robert Raber, 908-439-2200, ext. 5696
Senior Financial Analyst
robert.raber@ambest.com
or
Henry Witmer, CPCU, ARM-E, 908-439-2200, ext. 5097
Assistant Vice President
henry.witmer@ambest.com
or
Christopher Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com