The Dai-ichi Life Insurance Company Scores Superior Credit Ratings - AM Best
KUALA LUMPUR, Feb 18 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit rating of “aa-” (Superior) of Japan’s The Dai-ichi Life Insurance Company Limited (DL), the wholly owned operating subsidiary of Dai-ichi Life Holdings Inc (DLH).
The outlook of these credit ratings (ratings) is stable, reflecting DLH’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile, and appropriate enterprise risk management.
DLH is the ultimate parent for the entire Dai-ichi organisation, in which AM Best views DL as being integral to the group, given its financial, operational and strategic importance to the overall organisation.
AM Best in a statement said the DL’s ratings are based upon the balance sheet fundamentals and operating performance of the DLH organisation, which are then extended specifically to DL.
DLH’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which was assessed as being at the strongest level.
The group’s total reported capital increased by 46 per cent year over year to 3.9 trillion Japanese yen as of March 31, 2024, primarily driven by unrealised gains on securities amid favourable financial market conditions. (100 Japanese yen = RM2.92)
Meanwhile, DLH’s operating performance remained strong and resilient in the fiscal year ended March 31, 2024, achieving consolidated premium income of 7.5 trillion Japanese yen and a fundamental profit of 525 billion Japanese yen.
The group’s premium income and annualised premiums of new business also recorded strong growth, supported by higher demand for foreign currency-denominated single premium products in Japan and increased overseas sales contribution.
Remains as one of the largest private life insurance groups in Japan, DLH has continued to expand its business footprint through strategic acquisitions, including ipet Holdings and Benefit One in the country, as well as Partners Life Limited in New Zealand, further strengthening its market position.
-- BERNAMA