AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of 'aa+' (Superior) of
The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the
The ratings reflect TMNF's balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management (ERM).
TMNF's balance sheet strength assessment reflects risk-adjusted capitalisation that is at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). Besides its sizable solvency capital of over
TMNF has a track record of strong operating performance, mainly supported by steadily increasing premium income; a consistently strong and sizable domestic business with an average five-year combined ratio of approximately 95.5% (fiscal years 2016-2020), excluding its compulsory automobile liability insurance (
TMNF continues to maintain a strong and leading position in
The company continues to have a sophisticated ERM framework that is embedded throughout its organisation. AM Best believes that TMNF's ERM programme is very effective in managing its group-wide exposure to potential earnings and capital volatility.
The stable outlooks reflect AM Best's expectation that TMNF will maintain its overall balance sheet assessment, supported by risk-adjusted capitalisation at the strongest level, as measured by BCAR, while maintaining the strong performance in its domestic non-life business and developing its overseas insurance business in a prudent manner over the intermediate term.
Negative rating actions could occur if there is material deterioration in risk-adjusted capitalisation, such as substantial losses caused by investment volatility or large-scale natural catastrophes. Negative rating actions could also occur if there is significant deterioration in
The FSR of A++ (Superior) and the Long-Term ICRs of 'aa+' (Superior), each with a stable outlook, have been affirmed for the following subsidiaries of
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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