A.M. Best Affirms Rating of Fuji Fire & Marine Insurance Company, Ltd.Business Editors/Insurance Writers OLDWICK, N.J.--(BUSINESS WIRE)--March 17, 2003 A.M. Best Co. has affirmed the financial strength rating of B++ (Very Good) of The Fuji Fire & Marine Insurance Company Ltd., Osaka, Japan. The outlook is stable. The company has a financial size category of XIV. The rating reflects the company's secure capitalization, new leadership and strategies for competing in Japan's deregulated and highly competitive financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. marketplace. The rating also recognizes Fuji Fire's expense-conscious operations, strong claims servicing capability, enhanced product development capability and strong customer loyalty. Capitalization is enhanced by Fuji Fire's financial flexibility, comprehensive reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. coverage and substantial reserves to mitigate catastrophe losses. Offsetting these positive rating factors is Japan's intensely competitive non-life insurance marketplace, where deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of the insurance industry and liberalization lib·er·al·ize v. lib·er·al·ized, lib·er·al·iz·ing, lib·er·al·iz·es v.tr. To make liberal or more liberal: "Our standards of private conduct have been greatly liberalized . . . of the financial services industry in general has encouraged consolidation of traditional market players. The competitive environment, combined with the depressed Japanese economy, has resulted in sluggish premium growth, sharply reduced investment income and weak underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. profitability. While these weakened fundamentals will likely result in continued pressure on Fuji Fire's operating performance over the near term, the company has developed strategies for improving future premium growth and profitability, including seeking support from majority shareholders, AIG AIG addressee indicator group (US DoD) AIG American International Group, Inc AiG Answers in Genesis (religious group in defense of Scripture) AIG Artificial Intelligence Group AIG Australian Industry Group and ORIX. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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