A.M. Best Affirms Ratings of Sompo Japan Insurance Company of America and Sompo Japan Fire and Marine Insurance Company of

  A.M. Best Affirms Ratings of Sompo Japan Insurance Company of America and
  Sompo Japan Fire and Marine Insurance Company of America

Business Wire

OLDWICK, N.J. -- July 11, 2013

A.M. Best Co. has affirmed the financial strength rating (FSR) of A+
(Superior) and the issuer credit ratings (ICR) of “aa-” of Sompo Japan
Insurance Company of America (SJA) and its reinsured subsidiary, Sompo Japan
Fire and Marine Insurance Company of America (SJFM) (both domiciled in New
York, NY). The outlook for all ratings is stable. Both companies are
subsidiaries of Sompo Japan Insurance Inc. (Sompo Japan) and are ultimately
owned by NKSJ Holdings Inc. (NKSJ).

The ratings of SJA and SJFM largely reflect SJA’s strong risk-adjusted
capitalization, both companies’ strategic roles and importance as U.S.
domestic insurers within NKSJ and the benefits of the explicit support
provided through reinsurance and contributed capital by Sompo Japan, as well
as the implied support from NKSJ. SJFM’s ratings also reflect the 100% quota
share reinsurance provided by SJA to SJFM since October 2008. SJA’s primary
mission is to provide various commercial property/casualty coverages to Sompo
Japan’s clients operating in the United States. SJFM provides workers’
compensation coverage to clients of Sompo Japan operating in the United
States.

Given the extent of implied and explicit support embedded in these ratings,
any upward or downward movement on the ratings of Sompo Japan would likely
influence the ratings of SJA and SJFM. Any material changes to the financial
condition of NKSJ and/or its commitment in the United States also could cause
SJA and SJFM’s ratings to move. In addition, if SJA’s capitalization or
operating performance falls markedly short of A.M. Best’s expectations,
negative rating actions could ensue.

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
www.ambest.com/ratings/methodology.

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.

Contact:

A.M. Best Co.
Richelle Bryan, 908-439-2200, ext. 5344
Financial Analyst
richelle.bryan@ambest.com
or
Joseph Roethel, 908-439-2200, ext. 5630
Assistant Vice President
joseph.roethel@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com
 
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