Best Assigns Aioi America “A” Rating

A.M. Best Co. announced that it has assigned a financial strength rating of “A” (Excellent) to Chicago-based Aioi Insurance Company of America with a stable outlook.

“The rating reflects Aioi America’s status as a core subsidiary of Aioi Insurance Company, Limited (Aioi Japan), excellent risk-adjusted capitalization, good underwriting performance and a comprehensive reinsurance program provided by its parent company,” said Best. “An offsetting factor is its limited business profile.”

Japan’s Aioi Group was formed through the merger of Dai-Tokyo Fire and Chiyoda Fire. It has around 11 percent of the Japanese P/C market.

Best noted: “Aioi America’s excellent stand-alone capital position is supported by its conservative investment portfolio, favorable loss reserve development and its low exposure to catastrophe losses through parental reinsurance support. In addition, profitable underwriting, through premium growth and limited losses, has contributed to its capital base.

“While the company’s business profile is considered modest as the majority of its business is transacted through a fronting arrangement, Aioi America is required to service its parent’s Japanese clients who operate in the United States and is therefore deemed core.”