Latest news with #MS&AD
Yahoo
23-05-2025
- Business
- Yahoo
AM Best Revises Issuer Credit Rating Outlook to Positive for MS Amlin AG (MS Reinsurance)
LONDON, May 23, 2025--(BUSINESS WIRE)--AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term ICR of "aa-" (Superior) of MS Amlin AG (MS Reinsurance) (Switzerland). The outlook of the FSR is stable. The Credit Ratings (ratings) reflect MS Reinsurance's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. In addition, MS Reinsurance's ratings benefit from rating enhancement, in the form of lift, due to explicit support provided by its ultimate parent, MS&AD Insurance Group Holdings, Inc. (MS&AD). MS Reinsurance receives explicit group support through a parental guarantee issued by MS Reinsurance's intermediate parent, Mitsui Sumitomo Insurance Company, Limited (MSI). The revision of the Long-Term ICR outlook to positive reflects the growing profile of MS Reinsurance within the MS&AD group, along with its improving financial performance. The recovery in operating profitability over several years has been driven by MS Reinsurance's improved underwriting performance, which has benefitted from a series of remedial measures put in place to reposition its underwriting portfolio, including reducing catastrophe exposure and exiting underperforming accounts, as well as favorable market conditions. The result of these measures is evidenced by the 95% and 96% combined ratio (as calculated by AM Best, based on Swiss Code of Obligations) that MS Reinsurance achieved in 2024 and 2023, respectively, or approximately 90% for both years, under IFRS 17. Prospectively, MS Reinsurance is expected to report profitable and less volatile underwriting results, reinforcing its position as a key subsidiary within the MSI group. MS Reinsurance's balance sheet strength assessment is underpinned by its risk-adjusted capitalisation being at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). After declining to the very strong level in 2023, largely as a result of strong premium growth, the company's BCAR recovered to the strongest level in 2024, driven by a second consecutive year of profitability and the retention of earnings. MS Reinsurance is an international reinsurance company with key operating hubs in Zurich, Bermuda and the United States. The company is well-diversified by both line of business and geography. This press release relates to Credit Ratings that have been published on AM 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 AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Romeo BertiSenior Financial Analyst+44 20 7397 Tim PrinceDirector, Analytics+44 20 7397 Christopher SharkeyAssociate Director, Public Relations+1 908 882 Al SlavinSenior Public Relations Specialist+1 908 882
Yahoo
23-05-2025
- Business
- Yahoo
AM Best Revises Issuer Credit Rating Outlook to Positive for MS Amlin AG (MS Reinsurance)
LONDON, May 23, 2025--(BUSINESS WIRE)--AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term ICR of "aa-" (Superior) of MS Amlin AG (MS Reinsurance) (Switzerland). The outlook of the FSR is stable. The Credit Ratings (ratings) reflect MS Reinsurance's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. In addition, MS Reinsurance's ratings benefit from rating enhancement, in the form of lift, due to explicit support provided by its ultimate parent, MS&AD Insurance Group Holdings, Inc. (MS&AD). MS Reinsurance receives explicit group support through a parental guarantee issued by MS Reinsurance's intermediate parent, Mitsui Sumitomo Insurance Company, Limited (MSI). The revision of the Long-Term ICR outlook to positive reflects the growing profile of MS Reinsurance within the MS&AD group, along with its improving financial performance. The recovery in operating profitability over several years has been driven by MS Reinsurance's improved underwriting performance, which has benefitted from a series of remedial measures put in place to reposition its underwriting portfolio, including reducing catastrophe exposure and exiting underperforming accounts, as well as favorable market conditions. The result of these measures is evidenced by the 95% and 96% combined ratio (as calculated by AM Best, based on Swiss Code of Obligations) that MS Reinsurance achieved in 2024 and 2023, respectively, or approximately 90% for both years, under IFRS 17. Prospectively, MS Reinsurance is expected to report profitable and less volatile underwriting results, reinforcing its position as a key subsidiary within the MSI group. MS Reinsurance's balance sheet strength assessment is underpinned by its risk-adjusted capitalisation being at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). After declining to the very strong level in 2023, largely as a result of strong premium growth, the company's BCAR recovered to the strongest level in 2024, driven by a second consecutive year of profitability and the retention of earnings. MS Reinsurance is an international reinsurance company with key operating hubs in Zurich, Bermuda and the United States. The company is well-diversified by both line of business and geography. This press release relates to Credit Ratings that have been published on AM 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 AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Romeo BertiSenior Financial Analyst+44 20 7397 Tim PrinceDirector, Analytics+44 20 7397 Christopher SharkeyAssociate Director, Public Relations+1 908 882 Al SlavinSenior Public Relations Specialist+1 908 882
Business Wire
23-05-2025
- Business
- Business Wire
AM Best Revises Issuer Credit Rating Outlook to Positive for MS Amlin AG (MS Reinsurance)
LONDON--(BUSINESS WIRE)-- AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term ICR of 'aa-' (Superior) of MS Amlin AG (MS Reinsurance) (Switzerland). The outlook of the FSR is stable. The Credit Ratings (ratings) reflect MS Reinsurance's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. In addition, MS Reinsurance's ratings benefit from rating enhancement, in the form of lift, due to explicit support provided by its ultimate parent, MS&AD Insurance Group Holdings, Inc. (MS&AD). MS Reinsurance receives explicit group support through a parental guarantee issued by MS Reinsurance's intermediate parent, Mitsui Sumitomo Insurance Company, Limited (MSI). The revision of the Long-Term ICR outlook to positive reflects the growing profile of MS Reinsurance within the MS&AD group, along with its improving financial performance. The recovery in operating profitability over several years has been driven by MS Reinsurance's improved underwriting performance, which has benefitted from a series of remedial measures put in place to reposition its underwriting portfolio, including reducing catastrophe exposure and exiting underperforming accounts, as well as favorable market conditions. The result of these measures is evidenced by the 95% and 96% combined ratio (as calculated by AM Best, based on Swiss Code of Obligations) that MS Reinsurance achieved in 2024 and 2023, respectively, or approximately 90% for both years, under IFRS 17. Prospectively, MS Reinsurance is expected to report profitable and less volatile underwriting results, reinforcing its position as a key subsidiary within the MSI group. MS Reinsurance's balance sheet strength assessment is underpinned by its risk-adjusted capitalisation being at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). After declining to the very strong level in 2023, largely as a result of strong premium growth, the company's BCAR recovered to the strongest level in 2024, driven by a second consecutive year of profitability and the retention of earnings. MS Reinsurance is an international reinsurance company with key operating hubs in Zurich, Bermuda and the United States. The company is well-diversified by both line of business and geography. This press release relates to Credit Ratings that have been published on AM 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 AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Yahoo
22-04-2025
- Business
- Yahoo
MS&AD reportedly plans $5bn investment to boost North American growth
MS&AD Insurance Group Holdings plans to invest up to Y700bn to grow its North American operations, aiming to double operating profits in the region, Bloomberg News reported, citing the company's CEO. The Tokyo-based insurer, which leads in market share among global companies in Asia, is the third-ranked Japanese insurer in North America. 'So the challenge is how to become the top player there,' CEO Shinichiro Funabiki told Bloomberg in an interview. 'We need to strengthen our organisation so that we can double our profits in the near future,' said Funabiki, noting that specific business areas and investment targets will be decided later. Funabiki said the company intends to maintain its current investment approach. MS&AD projects net profits from its North American operations, encompassing Canada and Mexico, to hit Y166bn in the fiscal year ending March 2025, a 3.5-fold rise from the prior year. Amid a declining domestic market due to Japan's shrinking population, Japanese insurers are pursuing overseas growth through acquisitions. In March, MS&AD's subsidiary, Mitsui Sumitomo Insurance Co., revealed plans to purchase a 15% stake in US-based W.R. Berkley Corp. Funabiki affirmed the company's commitment to a bold investment approach. After factoring in the W.R. Berkley deal, MS&AD estimates Y600bn–Y700bn remains for investments, partly funded by proceeds from divesting cross-held shares in companies with prior business connections. Additionally, MS&AD is looking to merge its non-life insurance units, Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance, with April 2027 the target date for completion. Funabiki declined to discuss potential cost savings from the merger but suggested it could strengthen group governance. Japan's Financial Services Agency issued business improvement orders in March to four non-life insurers, including Mitsui Sumitomo Insurance, for mishandling customer data, and in December 2023 for colluding on pricing in corporate contracts. 'The most lacking aspect was the ability to anticipate risks,' Funabiki said, noting that 'having two insurance companies of the same size with a dispersed organisational structure is not an optimal state'. The merged entity may adopt a merit-based personnel system, moving away from seniority, a change Mitsui Sumitomo Insurance initiated this fiscal year. "MS&AD reportedly plans $5bn investment to boost North American growth " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Japan Times
22-04-2025
- Business
- Japan Times
Insurer MS&AD plans to invest $5 billion to double U.S. profits
MS&AD Group plans to invest as much as about ¥700 billion ($5 billion) to expand in the North American market, to meet its goal of doubling operating profits in the region, according to its chief executive officer. The Tokyo-based casualty insurer has the highest market share in Asia among global firms, but it's No. 3 among Japanese peers in North America, "so the challenge is how to become the top player there,' said Shinichiro Funabiki in an interview. "We need to strengthen our organization so that we can double our profits in the near future,' said Funabiki, adding that the business areas and new investment targets it will pursue will be determined in the future. Japanese insurers are increasing their presence overseas through takeovers as they face growing challenges in their home market due to a shrinking population. MS&AD announced in March that its subsidiary Mitsui Sumitomo Insurance will take a 15% stake in U.S. insurer W.R. Berkley. The company plans to continue its aggressive investment strategy moving forward, Funabiki said. MS&AD forecasts that net profit for its North American operations, including Canada and Mexico, will reach ¥166 billion in the fiscal year ended March 2025, a 3.5fold increase from the previous fiscal year. MS&AD has already announced its plan to redirect funds from selling cross-held shares of companies with which it had business ties toward growth investments. Considering the money it's spending for the stake in U.S.-based W.R. Berkley, the amount available for investment is estimated to be about ¥600 billion to ¥700 billion. The Japanese insurer also plans to merge its non-life insurance units, Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance, with the target date set for April 2027. He declined to comment on cost reductions resulting from the consolidation. The merged company may adopt a personnel management approach based on ability rather than seniority, which Mitsui Sumitomo Insurance began implementing this fiscal year, Funabiki said. The CEO indicated that merging the companies may help improve the group's governance. Japan's Financial Services Agency issued business improvement orders to four non-life insurers including Mitsui Sumitomo Insurance for mishandling customer information in March, and for colluding to fix prices in contracts with corporate clients in December 2023. "The most lacking aspect was the ability to anticipate risks,' leading to irregularities, Funabiki said. "Having two insurance companies of the same size with a dispersed organizational structure is not an optimal state.'
