A.M. Best Affirms Credit Ratings of The Dai-ichi Life Insurance Company, Limited

Business Wire

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 The Dai-ichi Life Insurance Company, Limited (DL) (Japan), a wholly owned subsidiary of Dai-ichi Life Holdings, Inc. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect DL’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.

DL’s very strong balance sheet is underpinned by risk-adjusted capitalization that A.M. Best considers to be at the strongest level and by a positive impact from the holding company, which is offset partially by DL’s moderate asset/liability duration gap. 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 shareholder funds. DL’s financial leverage remains adequate for the current ratings.

DL’s profitability remains strong, demonstrated by a relatively high level of operating return on equity. However, the company has reported a modest level of volatility in its operating results, which are susceptible to financial market conditions.

DL has a well-diversified portfolio in terms of business lines and geography. The company carries a moderate level of product risk due to having some concentration of long-duration policies in its domestic life insurance businesses.

Negative rating actions could occur if there is material deterioration in the company’s risk-adjusted capitalization or 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.

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

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