A.M. Best Affirms Rating of NIPPONKOA Insurance Company, Ltd.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Feb. 25, 2003 A.M. Best Co. has affirmed the financial strength rating of A (Excellent) of NIPPONKOA Insurance Company, Ltd., Tokyo, with a stable outlook. The company has a financial size category of XV. The rating reflects the company's excellent capitalization, strong market presence and effective strategies for competing in a deregulated and 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 company's capitalization is enhanced by 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. programs and substantial reserves to protect against catastrophe losses. Offsetting these positive rating factors is Japan's intensely competitive non-life insurance marketplace. 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 and strong competition in commercial and personal lines. This competitive environment, combined with Japan's depressed economy, has resulted in slowed premium growth, reduced 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 and sharply lower interest and dividend income. These factors will continue to pressure NIPPONKOA's operating performance in the near to mid term. 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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