A.M. Best Upgrades Issuer Credit Ratings of First Insurance Company of Hawaii, Ltd. and Its Subsidiaries

Proquest LLC

A.M. Best has upgraded the issuer credit ratings (ICR) to "aa" from "aa-" and affirmed the financial strength rating (FSR) of A+ (Superior) of First Insurance Company of Hawaii, Ltd. (FICOH) (Honolulu, HI) and its reinsured subsidiaries, collectively referred to as First of Hawaii Group.

The outlook for the ICRs has been revised to stable from positive, while the outlook for the FSR is stable. (See below for a detailed listing of the companies and ratings.)

The upgrading of the ICRs reflects First of Hawaii Group's excellent earnings profile through 2013, its unique role within Tokio Marine Holdings, Inc. (TMHD) and its 100 percent ownership by Tokio Marine North America, Inc., an insurance holding company subsidiary of Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF), since 2012. These ratings recognize FICOH's consistently profitable underwriting performance, conservative reserving practices, strong risk-adjusted capitalization and sound localized market presence as one of the leading insurance providers in Hawaii. The ratings also consider the operational and financial support provided by TMNF.

Partially offsetting these positive rating factors are the group's concentration risk as a single state insurer, its potential exposure to catastrophe and terrorism losses, and the challenges associated with the gradual recovery of the economy and the competitive environment in which it operates.

Upward movement on the ratings over the near term is unlikely. Downward movement on the ratings could occur if FICOH has a significant decline in operating performance and capitalization, any negative rating actions on TMNF and/or any change in support or relationship with TMHD.

The ICRs have been upgraded to "aa" from "aa-" and the FSR of A+ (Superior) has been affirmed for First Insurance Company of Hawaii, Ltd. and its following reinsured subsidiaries: