HONG KONG, Jan 26 (Bernama-BUSINESS WIRE) -- A.M. Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” of The Dai-ichi Life Insurance Company, Limited (DL) (Japan), a wholly owned subsidiary of Dai-ichi Life Holdings, Inc. The outlook of these Credit Ratings (ratings) is stable.
 
The ratings reflect DL’s strong risk-adjusted capitalization, strong market position and favorable operating performance.
 
DL experienced a decline in its risk-adjusted capitalization, primarily due to the establishment of a holding structure through an asset split in October 2016. However, its risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and its adequate level of financial leverage remain supportive of the current ratings.
 
DL has achieved a diversified business portfolio by actively expanding its life operations in overseas markets while maintaining a strong domestic market position. The growing contribution from its overseas business has helped the company withstand the negative impacts of Japan’s challenging market conditions. In addition, the company’s risk management capabilities remain adequate to manage its wide scope of business.
 
Offsetting rating factors are the sustained low interest rate environment and intensifying competition in Japan’s market.
 
Negative rating actions could occur if there is material deterioration in the company’s risk-adjusted capitalization or sustained deterioration in its operating performance.
 
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
 
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
 
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
 
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
 
Contacts
A.M. Best
Seewon Oh
Associate Director
+852 2827 3404
seewon.oh@ambest.com
or
Moungmo Lee
Managing Director
+65 6589 8412
moungmo.lee@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

Source: A.M. Best
 
View this news release online at:
http://www.businesswire.com/news/home/20170125005883/en
 
--BERNAMA