AM Best Affirms Credit Ratings of First Insurance Company of Hawaii, Ltd. and Subsidiaries

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term 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 of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and ratings).

The ratings reflect First of Hawaii Group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and very strong enterprise risk management (ERM).

The group continues to record profitable operating performance and strong investment returns. The balance sheet strength assessment level is supported by the group’s retained earnings, conservative reserve positions and favorable levels of liquidity. FICOH has a deep-rooted local market presence as one of the leading insurance companies in Hawaii. The ratings also consider the operational, financial and ERM support provided by the ultimate parent, Tokio Marine Holdings, Inc., and its lead insurance operating company, Tokio Marine & Nichido Fire Insurance Co., Ltd. These factors include day-to-day operational synergies across its U.S.-based subsidiaries, reinsurance support and economic capital modeling that is superior to peer companies. FICOH is exposed to the inherent risks associated with operating within a single jurisdiction as it pertains to regulatory, judicial, legislative and economic factors, and the potential exposure to natural catastrophe losses.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa” have been affirmed with stable outlooks for First Insurance Company of Hawaii, Ltd. and its following property/casualty subsidiaries:

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

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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