A.M. Best Affirms Credit Ratings of Meiji Yasuda Life Insurance Company

HONG KONG--(BUSINESS WIRE)-- A.M. Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” of Meiji Yasuda Life Insurance Company (Meiji Yasuda) (Japan). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Meiji Yasuda’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.

The company’s capital requirements, as measured by Best’s Capital Adequacy Ratio (BCAR), continue to be driven by asset risk, due to its sizeable investment assets relative to its capital and surplus. Also, the company maintains a modest gap between asset and liability durations. Meiji Yasuda’s financial leverage remains adequate for the current ratings.

Meiji Yasuda reports a stabilized trend in premium income in terms of annualized premium equivalent in the past three years, owing to the company’s effort to control sales of single-premium products. The company reports a moderate level of volatility in its operating results, which are susceptible to financial market conditions.

As the third-largest life insurer in Japan, Meiji Yasuda holds a strong position in the group insurance market. More recently, the company has started to diversify its business by expanding overseas, though its geographic diversification remains modest for now.

Meiji Yasuda is well-positioned at its current rating level. Negative rating actions could occur if there is material deterioration in its risk-adjusted capitalization due to substantial investment losses, or if it experiences sustained deterioration in its operating performance.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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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Source: A.M. Best