AM Best Affirms Excellent Ratings For China's TMNCH

KUALA LUMPUR, April 24 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of The Tokio Marine and Nichido Fire Insurance Company (China) Limited (TMNCH).

The outlook of these credit ratings (ratings) is stable, reflecting TMNCH’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

According to AM Best in a statement, the ratings also consider support from its parent, Tokio Marine & Nichido Fire Insurance Co Ltd (TMNF), the main insurance operating entity of Tokio Marine Holdings Inc.

A small-sized, long-standing player in China’s non-life insurance markets, TMNCH’s very strong balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio, strengthened by its low underwriting leverage and reinsurance dependency, as well as positive liquidity.

The company’s capital and surplus remain comparatively modest, while its solvency stays robust with a comfortable buffer above regulatory requirements.

AM Best assesses TMNCH’s operating performance as strong, demonstrated by a track record of positive underwriting results that outperformed the market over the past five years.

However, underwriting performance and net profitability were more subdued in 2025 due to intensifying market competition and reduced risk exposure, with return on equity falling to the mid-single-digit level.

Supported by interest income from bank deposits, TMNCH’s investment results remained stable, and the company will continue to explore business opportunities in the upstream and downstream industries of Japanese clients in the future.

-- BERNAMA