MEIJI YASUDA CAPITAL POSITION PROMPTS ACTION

A DETERIORATION in capital position during the first three months of this financial year has resulted in a negative outlook on the issuer credit rating of Meiji Yasuda Life Insurance Company. However AM Best has affirmed the A (excellent) financial strength rating on the Japanese insurer citing its soundness of operating performance and solid business profile. And the rating agency explained: “Despite the noticeable deterioration in Meiji Yasuda’s capital and surplus, due mostly to the decrease of unrealized gains, Meiji Yasuda’s capital adequacy support the current rating level.” It added that Meiji Yasuda had been setting up additional reserves to enhance its financial soundness in the future noting the insurer plans to reserve Yen600bn of additional liability reserves by the end of the 2009 fiscal year to solve the negative spread issue.