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Fitch: Overseas Business Key Growth Driver for Japanese Non-Life Insurance
May 26, 2016 / 9:12 AM / 2 years ago

Fitch: Overseas Business Key Growth Driver for Japanese Non-Life Insurance

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Japan Non-Life Dashboard 2016 here HONG KONG/TOKYO, May 26 (Fitch) A greater contribution from overseas business is likely for Japanese life insurance groups in the financial year ending March 2017 (FYE17), say Fitch Rating in a new report published today. This follows the large acquisitions by Tokio Marine Group and MS&AD Insurance Group. Fitch believes Japanese non-life insurers are seeking to offset sluggish domestic non-life business growth and improve the deployment of capital released by the reduction of cross-holdings. At the same time, appropriate enterprise risk management is becoming more important to achieve the benefits of business diversification. Underwriting profit of Japan's top four non-life insurers improved despite domestic weather-related events in FYE16. The average 'combined ratio' remained satisfactory at 92%, helped by ongoing premium adjustment based on underwriting risks. Aggregated net insured losses stemming from the Kumamoto earthquake in April 2016 have had only a negligible impact on FYE17 earnings. Catastrophe exposure and domestic equity exposure continue to cause volatility in operating performance and capitalisation. Fitch believes the insurers are likely to maintain a satisfactory underwriting profit after raising premiums on underwriting risk. Contact: Akane Nishizaki Associate Director +852 2263 9942 Fitch (Hong Kong) Limited 19/F Man Yee Building 68 Des Voeux Road Central Hong Kong Teruki Morinaga Director +81 3 3288 2781 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email:; Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: Additional information is available on ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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