A.M. Best Affirms Ratings of Tokio Millennium Re Ltd.

  A.M. Best Affirms Ratings of Tokio Millennium Re Ltd.

Business Wire

OLDWICK, N.J. -- December 12, 2012

A.M. Best Co. has affirmed the financial strength rating of A++ (Superior) and
issuer credit rating of “aa+” of Tokio Millennium Re Ltd. (TMR) (Bermuda). The
outlook for both ratings is stable.

TMR is a wholly owned subsidiary of Tokio Marine & Nichido Fire Insurance Co.,
Ltd. (TMNF), which is the main trading subsidiary of Tokio Marine Holdings,
Inc. (Tokio Marine Group). Both companies are domiciled in Tokyo, Japan.

The ratings reflect TMR's superior financial strength, favorable operating
performance over the last several years and its prudent risk management
practices. In addition, the ratings are enhanced by the implicit and explicit
support provided by TMNF. The ratings also consider TMR's strategic importance
to Tokio Marine Group's initiatives to geographically diversify its
catastrophe risks as well as enhance its enterprise risk management function.

Tokio Marine Group has unified its global reinsurance brand under TMR over the
past few years. TMR benefits from the global recognition and balance sheet
strength of TMNF. TMR predominately writes property catastrophe and specialty
reinsurance and has been slowly expanding into casualty reinsurance since
mid-2011 to diversify its book of business. TMR continues to be a leader in
transforming and transferring reinsurance risk to the capital markets, through
its new entities Shima Re and Tokio Solution Management.

TMR has a scientific and quantitative focus and looks to take on risk that it
can identify with and model with a high degree of comfort. Property
catastrophe modeling is done by utilizing both commercial models and
proprietary models. This multi- model allows TMR to be more competitive or
selective on risks. TMR also maintains a conservative investment portfolio.

Partially offsetting these positive rating factors is TMR's exposure to low
frequency, high severity catastrophic events, as evidenced by the New Zealand
earthquakes. These losses significantly impacted TMR's financial performance
in 2011; however, the company remains well capitalized and well positioned to
take advantage of improving property catastrophe rates in the global

Positive rating actions may result over the next several years if TMR exhibits
consistency in annual earnings and retained earnings growth, higher surplus
levels and/or further strategic integration from TMNF. Negative rating actions
could occur if the company’s operating performance is consistently below the
market by a significant margin over the next several years, and/or there is
capital deterioration due to poor investment performance.

A.M. Best remains the leading rating agency of alternative risk transfer
entities, with more than 200 such vehicles rated in the United States and
throughout the world.

For current Best’s Ratings and independent data on the captive and alternative
insurance market, please visit www.ambest.com/captive.

The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Key criteria utilized include: “Risk Management and the Rating
Process for Insurance Companies”; “Understanding BCAR for Property/Casualty
Insurers”; “Rating Members of Insurance Groups”; “Evaluating Country Risk”;
“Catastrophe Analysis in A.M. Best Ratings”; and “A.M. Best’s Perspective on
Operating Leverage.” Best’s Credit Rating Methodology can be found at

Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more information,
visit www.ambest.com.

       Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.


A.M. Best Co.
Nick Dranchak, 908-439-2200, ext. 5629
Financial Analyst
Steven Chirico, CPA, 908-439-2200, ext. 5087
Assistant Vice President
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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