A.M. Best Affirms Rating of The Toa Reinsurance Company, Limited.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) of The Toa 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. Company, Limited (Toa Re) (Japan). At the same time, A.M. Best has assigned an "aa-" issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) to Toa Re. The outlook for both ratings is negative. The rating reflects the company's low premium leverage, strong market presence and diversified revenue sources. Adding to these positive factors is the improved underwriting performance in fiscal year 2003. However, the underwriting performance is expected to deteriorate in fiscal year 2004, mainly attributed to the major losses incurred by the serious typhoons in Japan in 2004. The company maintains a low net premium leverage of 0.49 times as of fiscal year 2003. Adjusted policyholder surplus (APHS APHS American Pseudo-obstruction and Hirschsprung's Disease Society APHS Allen Park High School (Allen Park, MI) APHS American Poultry Historical Society APHS Australian Pharmaceutical Healthcare Systems Pty Ltd ) was JPY JPY In currencies, this is the abbreviation for the Japanese Yen. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 219 billion (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 2,072 million), which is 55% of total assets as of fiscal year 2003. With the recovery of the Japanese stock market, the local solvency ratio Solvency Ratio One of many ratios used to gauge a company's ability to meet long-term obligations. Notes: Derived by taking a company's net worth and dividing by total assets. See also: Asset, Asset Valuation, Balance Sheet, Fundamental Analysis, Income Statement improved to 725% in fiscal year 2003 from 563% in fiscal year 2002. Toa Re maintains a preferred status with its Japanese non-life insurance clients, who are also major shareholders. The company enjoys an outstanding market presence as the only domestic professional reinsurance company in Japan. In recent years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time company has further diversified its portfolio into the life reinsurance market as well as overseas reinsurance markets. As of fiscal year 2003, life reinsurance represents 9% of the company's gross premium and overseas reinsurance represents 19% of the company's gross premium. Profitability of the company's overseas business is on an improving trend, and life business generates a stable underwriting income Underwriting income For an insurance company, the difference between the premiums earned and the costs of settling claims. for the company. In December 2003, Toa Re made further inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ into China by acquiring 10% of the shares of China Property & Casualty Reinsurance Company and China Life Reinsurance Company respectively. Offsetting these positive rating factors is the company's excessive exposure to the equity markets and the consolidation of the Japanese non-life market which results in lower demand for domestic reinsurance coverage. The company has 56% of the total assets or 102% of its APHS in equities as of fiscal year 2003. This high equity risk weighs heavily on the company's risk-based capitalization. Risk-based capitalization showed strong improvement in fiscal year 2003 as the Japanese stock market recovered, but the company is still vulnerable to market risk that hinges upon the performance of the domestic equity market. The market consolidation of the non-life insurance industry in Japan increased the direct companies' capacity to retain more business, which directly decreased the domestic demand for reinsurance protection. This trend is also shown in Toa Re's domestic reinsurance premiums over the last 4 years. For a list of A.M. Best's debt ratings, please visit http://www.ambest.com/debt. For current Best's Ratings, independent data and analysis on more than 470 reinsurance companies, please visit http://www.ambest.com/reinsurance/. 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 http://www.ambest.com. |
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