Best Lowers Tokio Marine Pacific Ratings
A.M. Best Co. has downgraded the financial strength rating to “A+” (Superior) from “A++” (Superior) and the issuer credit rating to “aa-” from “aa+” of Guam-based Tokio Marine Pacific Insurance Limited (TMPI), and has placed the ratings under review with negative implications.
“The rating actions follow TMPI’s change of business strategy,” said Best. “The company increased its business retention of accident and health (A&H) business and plans to underwrite property/casualty (P&C) business in Guam. A.M. Best has placed the ratings under review with negative implications due to the uncertainties relating to the company’s plan to expand its business lines.”
Best also noted that “TMPI has entered into a new reinsurance agreement with its parent company, Tokio Marine & Nichido Fire Insurance Company Limited (which no longer meets A.M. Best’s reinsured rating criteria). Under this new reinsurance agreement, TMPI increased its quota share business retention of A&H business to 40 percent from 10 percent. A.M. Best believes TMPI’s current risk-adjusted capitalization, as demonstrated by Best’s Capital Adequacy Ratio (BCAR), is adequate for the increase in A&H business.”
Best said it “will discuss these issues with TMPI’s management and aims to resolve the under review status as soon as possible.”
- New York City’s Biggest Taxi Insurer Is Insolvent, Risking Transit Meltdown
- Florida Governor Floats Condo Relief Session; Condo Captive Idea Flagging
- Hertz Tower Demolition Marks End of Hurricane-Damaged Landmark in Lake Charles
- Red Lobster Landlord Sues Insurer to ‘Clawback’ $1.2M Fire Claim Payment