A.M. Best Assigns Rating to The Yasuda Fire & Marine Insurance Company.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 22, 2001 A.M. Best Co. has assigned the financial strength rating of A++ (Superior) to The Yasuda Fire and Marine Insurance Company, Ltd., Tokyo, and assigned it a financial size category of XV. The rating reflects the company's solid capitalization, strong market profile and increasing corporate ties with other 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. companies within the Mizuho Group. The rating also recognizes Yasuda Fire's superior 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. performance relative to its peers as evidenced by its combined ratio of 95.8 in fiscal year 1999 (ending March 31, 2000), which ranked it third best among the 14 listed Japanese primary non-life companies. Yasuda Fire's net premiums written to surplus ratio of 0.7x at fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. 1999--with surplus adjusted for unrealized capital gains and contingency reserves--is conservative and compares favorably with insurers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and other world markets with a similar business mix. Its solvency margin ratio of 1,392% at fiscal year-end 1999, which ranked seventh among its peers, also indicates strong capitalization. The company's capitalization and financial flexibility are enhanced by its access to the capital markets and no outstanding debt. Yasuda Fire has substantial market presence, ranking second among Japanese non-life insurers with 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. 904.5 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. $8.5 billion) of net premiums written in fiscal 1999. Partially offsetting these positive rating factors is the intensely competitive non-life insurance marketplace in Japan stemming from the 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, 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 and entry of foreign companies and companies from other industries into the market. This competitive environment, combined with the current depressed Japanese economy, is resulting in sluggish premium growth and declining dividend and interest income. While this will likely result in continued pressure on Yasuda Fire's operating performance in the near term, the company has developed bold strategies for improving future premium growth and profitability. These strategies include strengthening internal operating fundamentals, as well as merging and forming alliances with other major insurers and financial services companies. For the full report, which includes the companies' integration plan, please visit http://www.ambest.com/press/yasuda.pdf. 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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