A.M. Best Affirms Ratings of Tokio Millennium Re AG
OLDWICK, N.J. -- December 20, 2013
A.M. Best Co. has affirmed the financial strength rating of A++ (Superior) and
issuer credit rating of “aa+” of Tokio Millennium Re AG (TMR) (Switzerland).
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. TMR
re-domesticated to Switzerland from Hamilton, Bermuda on October 15, 2013
The ratings reflect TMR’s superior financial strength, its effective risk
management, favorable historical operating performance and its very strong
risk adjusted capital position. In addition TMR benefits from the global
recognition and balance sheet strength of TMNF, as well as the implicit and
explicit support provided by TMNF. The ratings also consider the key role that
TMR plays in transferring and accepting extreme risks in the international
reinsurance market, which is a part of the overall groups’ strategy of
Tokio Marine Group has unified its global reinsurance brand under TMR over the
past few years. 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 Tokio Solution Management Ltd. and Shima Re subsidiaries.
TMR continues to innovate and improve its already strong ERM platform by
continuing to add more staff to enhance the overall risk ownership by each
business unit. TMR’s property catastrophe modeling uses multiple commercial
models as well as proprietary models, which have both a scientific and
quantitative focus. This multi model approach allows TMR to assume risks that
it can identify and model with a high degree of certainty. Effective ERM was
evidenced by TMR’s limited losses from Superstorm Sandy, even with exposure to
the storm in their book of business. Given the higher catastrophe risk that is
taken, TMR has a more conservative asset strategy in place.
Partially offsetting these positive rating factors are TMR's exposure to low
frequency, high severity catastrophic events, growth into newer markets
through it branches as well as diversification into casualty lines of
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
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.
Nick Dranchak, 908-439-2200, ext. 5629
Senior Financial Analyst
Robert DeRose, 908-439-2200, ext. 5453
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
Press spacebar to pause and continue. Press esc to stop.