AM Best Affirms Credit Ratings of The Dai-ichi Life Insurance Company, Limited
AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of
The ratings reflect DLH’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.
DLH is the ultimate parent for the entire Dai-ichi organisation. AM Best views DL as being integral to the group, given its financial, operational and strategic importance to the overall organisation. Accordingly, DL’s ratings are based upon the balance sheet fundamentals and operating performance of the DLH organisation, which are then extended specifically to DL.
DLH’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which has shifted to a very strong level from the strongest level. The change mainly reflects the negative impact on the group’s available capital caused by the decline in the market value of its sizeable foreign fixed-income portfolio, stemming from the sharp increase in foreign interest rates since 2022. Nevertheless, the group’s economic solvency ratio, as calculated by an internal capital model, remained relatively stable at above 200% during the period. The balance sheet strength assessment also is supported by the group’s conservative financial leverage, albeit relatively higher when compared with some other life insurers in
DLH’s operating performance remained strong and resilient, achieving consolidated premium income of
DLH remains one of the largest private life insurance groups in
Negative rating actions could occur if there is material and sustained deterioration in risk-adjusted capitalisation caused, for example, by a substantial increase in investment risk while capital growth remains insufficient. Negative rating actions also could occur if there is material and prolonged deterioration in operating performance caused by a substantial decline in its fundamental profit or in-force book of business. Positive rating actions could occur if the group demonstrates sustained improvement in its balance sheet strength metrics although the likelihood of such actions remains limited at this time.
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 AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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Source: AM Best
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