TOA RE LIFE CHOICE IMPROVES ITS PORTFOLIO

THE DECISION of Toa Re to reduce its participation in the competitive motor sector and increase its role in life lines has improved its business portfolio, according to AM Best. That was a driver in AM Best’s affirmation of the A+ (superior) financial strength rating of Toa Re and the A (excellent) financial strength rating of the Toa Reinsurance Company of America. On the other hand, AM Best did noted Toa Re’s "relatively high concentration of equity risk". It said: "Although Toa Re recorded an excellent operating result, its adjusted capital and surplus decreased by 8% to ¥260bn in fiscal year 2007. The decrease was due to a drop in unrealised capital gains resulting from the downward trend in the Japanese stock market in fiscal year 2007."