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A.M. Best Affirms Credit Ratings of Tokio Millennium Re AG


CONTACTS:

Guilherme (Guy) Monteiro Simoes
Senior Financial Analyst
+1 908 439 2200, ext. 5301
guy.simoes@ambest.com

Susan Molineux
Senior Financial Analyst
+1 908 439 2200, ext. 5829
susan.molineux@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - DECEMBER 20, 2017 09:15 AM (EST)
A.M. Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Rating of “aa+” of Tokio Millennium Re AG (TMR) (Switzerland). The outlook of these Credit Ratings (ratings) remains stable.

The ratings reflect TMR’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Additionally, TMR benefits from the global recognition, distribution capabilities and balance sheet strength of Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF), as well as the implicit and explicit support provided by TMNF. The ratings also consider the key role that TMR plays in transferring and accepting extreme risks in the international reinsurance market, which is a part of the overall group’s strategy of geographic and line-of-business diversification. In addition, TMR continues to be a leader in transferring reinsurance risk to the capital markets through its Tokio Solution Management Ltd. and Shima Reinsurance Ltd. subsidiaries.

Partially offsetting these positive rating factors are TMR’s exposure to low frequency, high severity catastrophic events and its recent growth into newer markets (particularly through its U.S. branch), as well as its diversification into casualty lines of business.

Positive rating actions could be caused by a sustained and material improvement in underwriting performance, coupled with growth in risk-adjusted capitalization. Negative rating actions could result from a material decline in risk-adjusted capital or loss of explicit parental support.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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