HONG KONG--(BUSINESS WIRE)--#insurance--AM Best has placed under review with negative implications the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of Tokio Marine Pacific Insurance Limited (TMPI) (Guam). Concurrently, AM Best has withdrawn the Credit Ratings (ratings) as TMPI has requested to no longer participate in AM Best’s interactive rating process.
The rating actions follow the recently announced definitive agreement by TMPI’s ultimate parent, Tokio Marine Holdings, Inc., that it will sell TMPI to Calvo Enterprises Inc. (Calvo), TMPI’s managing general agent. The transaction is expected to close by the end of 2023, subject to regulatory approvals and other customary closing conditions.
AM Best notes that the explicit support from Tokio Marine & Nichido Fire Insurance Company, Limited, the lead rating unit of Tokio Marine group, will remain until the transaction is completed.
The under review with negative implications status reflects lack of visibility into the credit fundamentals of the new parent and the level of support it will provide to TMPI. It also indicates uncertainties over the company’s capital plan and future business strategy under the new parent.
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 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.
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