A.M. Best Upgrades Ratings of First Insurance Company of Hawaii, Ltd. and Its Subsidiaries

  A.M. Best Upgrades Ratings of First Insurance Company of Hawaii, Ltd. and
  Its Subsidiaries

Business Wire

OLDWICK, N.J. -- February 28, 2013

A.M. Best Co. has upgraded the financial strength rating (FSR) to A+
(Superior) from A (Excellent) and issuer credit ratings (ICR) to “aa-” from
“a+” of First Insurance Company of Hawaii, Ltd. (FICOH) (Honolulu, HI) and its
reinsured subsidiaries, collectively referred to as First of Hawaii Group. The
outlook for the FSR remains stable, while the outlook for the ICR was revised
to positive from stable.

On November 29, 2011, Tokio Marine Holdings, Inc. (TMHD) (Tokyo, Japan)
acquired through its wholly owned subsidiary, Tokio Marine & Nichido Fire
Insurance Co., Ltd. (TMNF) (Tokyo, Japan), 50% of the outstanding shares of
FICOH, which previously was owned by CNA Financial Corporation (headquartered
in Chicago, IL). As a result, FICOH became a wholly owned subsidiary of TMNF.
On November 30, 2012, TMNF contributed 100% of the outstanding shares of FICOH
to Tokio Marine North America Inc., an insurance holding company domiciled in
the State of Delaware and a wholly owned direct subsidiary of TMNF. (See below
for a detailed list of the companies and ratings.)

The ratings reflect First of Hawaii Group's excellent earnings profile through
2012, its unique role within TMHD and its 100% ownership by TMNF since late
2011. These ratings recognize FICOH’s consistently profitable underwriting
performance, conservative reserving, strong risk-adjusted capitalization and
sound localized market presence as one of the leading insurance providers in
Hawaii. The ratings also consider the operational and financial support
provided by TMNF.

Partially offsetting these positive rating factors are the group's
concentration risk as a single state insurer, its potential exposure to
catastrophe and terrorism losses and the existing weak economic conditions and
highly competitive environment in its marketplace. Nevertheless, the outlook
reflects the group's strong risk-adjusted capitalization and A.M. Best's
expectation of continued profitable operating results in the near term.

Potential upward movement in the ratings of First of Hawaii Group could result
from continued profitable underwriting performance and maintaining a strong
risk-adjusted capital position. Possible downward movement in the ratings
could result from a significant decline in operating performance and
capitalization, any negative rating actions taken on TMNF and/or any change in
support or relationship with TMHD.

The FSR has been upgraded to A+ (Superior) from A (Excellent) and the ICR to
“aa-” from “a+” for the following members of First of Hawaii Group:

  *First Insurance Company of Hawaii, Ltd.
  *First Fire and Casualty Insurance of Hawaii, Inc.
  *First Indemnity Insurance of Hawaii, Inc.
  *First Security Insurance of Hawaii, Inc.

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. 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 © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.


A.M. Best Co.
Richelle Bryan, Financial Analyst, 908-439-2200, ext. 5344
Joseph Roethel, Assistant Vice President, 908-439-2200, ext. 5630
Rachelle Morrow, Senior Manager, Public Relations, 908-439-2200, ext. 5378
Jim Peavy, Assistant Vice President, Public Relations, 908-439-2200, ext. 5644
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