AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of 'aa-' (Superior) of
The outlook of these Credit Ratings (ratings) is stable.
DLH is the ultimate parent for the entire Dai-ichi organisation. AM Best views DL as being integral to the group, given its financial, operational and strategic importance to the overall organisation. Accordingly, DL's ratings are based upon the balance sheet fundamentals and operating performance of the DLH organisation, which are then extended specifically to DL.
The ratings reflect DLH's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.
DLH's balance sheet strength assessment mainly reflects its risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). This assessment also is supported by the group's low financial leverage, albeit higher than some of the life insurers in
DLH's operating performance has been strong and stable amid the COVID-19 pandemic, supported by stable premium income and fundamental profit with low volatility in the past. While the group's operating performance was adversely affected by
DLH remains one of the largest life insurance groups in
The stable outlooks reflect AM Best's expectation that DLH will maintain its overall balance sheet strength, supported by its risk-adjusted capitalisation at the strongest level, as measured by BCAR. Ongoing strategic initiatives implemented by management and its stable in-force business are also expected to support a consistent and strong operating performance over the intermediate term.
Negative rating actions could occur if there is a material deterioration in the group's risk-adjusted capitalisation caused by factors such as substantial investment losses. Negative rating actions also could occur if there is material deterioration in operating performance caused by a substantial decline in its fundamental profit or in-force book of business.
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 Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
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