AM Best Withdraws Credit Ratings of DTRIC Insurance Company, Limited and DTRIC Insurance Underwriters, Limited

HONG KONG--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of DTRIC Insurance Company, Limited (DTRIC) and its reinsured affiliate, DTRIC Insurance Underwriters, Limited. The outlook of these Credit Ratings (ratings) is stable. Both companies are domiciled in Honolulu, HI. Concurrently, AM Best has withdrawn these ratings as these companies have requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect DTRIC’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, very limited business profile and appropriate enterprise risk management. The ratings also consider the wide range of support that DTRIC receives from its parent, Aioi Nissay Dowa Insurance Company Limited (ADI), a member of MS&AD Insurance Group Holdings, Inc. Additionally, the ratings also reflect DTRIC’s recent change in business strategy to transition to a run-off insurance carrier.

AM Best expects that DTRIC will maintain its balance sheet fundamentals in line with the strong balance sheet strength assessment, supported by its strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). This follows a recent capital injection of USD 36 million from ADI in December 2025 and a material reduction of DTRIC’s underwriting risk and natural catastrophe exposure through a downscaled portfolio based on its run-off plan. The capital injection is expected to support DTRIC’s remaining liabilities and high expense burden until its businesses are fully run off by the end of 2027.

DTRIC’s marginal operating performance assessment reflects its historical profitability that has been lagging the composite average and unfavourable underwriting results due to a further material reduction in its premium base. In addition, DTRIC’s very limited business profile assessment reflects its transition to a run-off status, small business scale and lack of geographic diversification.

The ratings also factor in various forms of support from ADI, including a financial guarantee agreement, capital contributions and reinsurance support. In the medium term, AM Best expects that ADI will continue to support DTRIC in meeting its obligations and maintaining a sufficient solvency buffer during the run-off period.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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