AM Best Assigns Credit Ratings to Tokio Marine Newa Insurance Co., Ltd.

HONG KONG--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a+” (Excellent) to Tokio Marine Newa Insurance Co., Ltd. (TMNewa) (Taiwan). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect TMNewa’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also factor in the rating enhancement from its parent, Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF), which is the main insurance operating entity of Tokio Marine Holdings, Inc.

Established in 1999 by Yulon Group, a major automobile conglomerate in Taiwan, and later partnered with Tokio Marine Group, TMNewa is the fourth largest non-life insurer in Taiwan, with a 7.6% market share in 2025. TMNF is currently the controlling shareholder with a 50.18% stake, while Yulon Group has a collective shareholding of 49.48% via its subsidiaries, namely China Motor Co., Ltd., Yulon Motor Co., Ltd. and Yulon Finance Co., Ltd. Leveraging Yulon Group’s extensive network of car dealers, motor insurance is the largest product line in TMNewa’s underwriting book, constituting approximately 70% of gross premiums written in 2025, followed by other key products including commercial fire, casualty, and accident and health.

TMNewa’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), was assessed at the strongest level at year-end 2025, and is expected to further improve over the short to intermediate term. The company’s capital and surplus (C&S) has grown robustly through full profit retention, in addition to significant recovery from four rounds of material capital injections from shareholders in 2022 and 2023, after experiencing material underwriting loss from pandemic-related products. Other supporting factors include a conservative investment portfolio heavily weighted toward cash and high-quality fixed-income investments, financial flexibility from shareholders and supportive liquidity.

AM Best views TMNewa’s operating performance as adequate, as demonstrated by a track record of favourable operating performance, apart from a one-time underwriting loss in 2022. The company reported modest top-line growth in 2025, partially attributed to slower expansion in the major motor and commercial fire lines, following a period of double-digit expansion between 2022 and 2024. The return on equity (based on adjusted C&S) was 25.7% in 2025, supported by an improved net loss ratio, due to continued control over claims experience in two major product lines. The expense ratio benefits from the company’s sustained control over management expenses and commissions, along with the increased scale, and remains below the market average. The company’s investment portfolio continues to generate favourable results, supported by steady income streams from interest and dividend. Going forward, TMNewa is targeting profitable growth in non-motor business lines, including fire and liability insurance for small to medium-sized enterprises, while being disciplined on large commercial risks.

As a subsidiary of TMNF, the company receives various implicit support from TMNF, including management oversight, risk framework and governance, underwriting know-how, product development, investment and innovation.

Negative rating actions could occur if there is a material deterioration in TMNewa’s balance sheet strength assessment. Negative rating actions also could arise if there is a reduced level of support from the parent company, which may have a negative impact on TMNewa’s ratings. Although it is unlikely in the near term, positive rating actions could occur if TMNewa is able to achieve sustained improvement in its operating performance, while its balance sheet strength fundamentals remain robust.

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

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