A.M. Best Affirms Credit Ratings of First Insurance Company of Hawaii, Ltd.

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa” of First Insurance Company of Hawaii, Ltd. (FICOH) (Honolulu, HI) and its reinsured subsidiaries, collectively referred to as First of Hawaii Group. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and ratings).

The ratings reflect First of Hawaii Group’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance and very strong enterprise risk management (ERM). The results are supported by the capacity of the balance sheet, long-term profitable underwriting performance, conservative reserve positions and sound local market presence as one of the leading insurance companies in Hawaii. The ratings also consider the operational, financial and ERM support provided by the ultimate parent Tokio Marine Holdings, Inc. and its lead insurance operating company, Tokio Marine & Nichido Fire Insurance Co., Ltd.. These factors include day-to-day operational synergies across its U.S. based subsidiaries, reinsurance support and economic capital modeling that is superior to peer companies.

These rating factors are partially offset by the inherent risks associated with the company and its subsidiaries operating with a single jurisdiction as it pertains to regulatory, judicial, legislative and economic factors, and the group’s potential exposure to natural catastrophe and terrorism losses.

Positive rating action could occur if operating performance consistently exceeds peer companies over an extended period. Factors that could lead to negative pressure on the rating include underwriting or operating performance falling well below expectations; a decline in risk-adjusted capital; a change in view of the strategic importance of First of Hawaii Group to the ultimate parent; or an adverse change in the ratings of Tokio Marine & Nichido Fire.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa” have been affirmed for First Insurance Company of Hawaii, Ltd. and its following property/casualty subsidiaries:

• First Fire and Casualty Insurance of Hawaii, Inc.
• First Indemnity Insurance of Hawaii, Inc.
• First Security Insurance of Hawaii, Inc.

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.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

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A.M. Best

Robert Raber, +1-908-439-2200, ext. 5696

Senior Financial Analyst

[email protected]

or

Gregory T. Williams, +1-908-439-2200, ext. 5813

Senior Director

[email protected]

or

Christopher Sharkey, +1-908-439-2200, ext. 5159

Manager, Public Relations

[email protected]

or

Jim Peavy, +1-908-439-2200, ext. 5644

Director, Public Relations

[email protected]

Source: A.M. Best