DIVERSIFICATION CENTRAL TO RATINGS AFFIRMATION FOR TOKIO MARINE

Several factors including diversified income sources and strong capitalisation prompted AM Best to affirm its A++ (superior) financial strength rating on Japanese giant of Tokio Marine & Nichido Fire Insurance. AM Best noted that Tokio Marine has successfully developed a life business in recent years and added this was expected to contribute 20% to 25% of adjusted earnings going forward. It is also looking to move closer to it strategy of generating 20% to 25% of adjusted earnings from international business. “With the diversification, the group’s concentration risk on Japanese catastrophe exposure has been alleviated, and Tokio Marine is able to capture new business opportunities outside the matured Japanese non-life market,” AM Best said. The international expansion includes the acquisition of Kiln in March and plans to buy Philadelphia Consolidated Holding announce d in July and giving the group what AM Best called “a meaningful presence in the US non-life insurance market”. Tokio Marine remains market leader in its domestic Japanese market with dominant share of approximately 25% in fiscal year 2007.