TEXT-S&P summary: Tokio Marine Insurance Singapore Ltd.

(The following statement was released by the rating agency)

Jan 17 -

===============================================================================

Summary analysis -- Tokio Marine Insurance Singapore Ltd. --------- 17-Jan-2013

===============================================================================

CREDIT RATING: Country: Singapore

Local currency A+/Negative/--

Primary SIC: Fire, marine, and

casualty

insurance

===============================================================================

Credit Rating History:

Local currency Foreign currency

27-Jan-2011 A+/-- --/--

01-Jul-2008 AA-/-- --/--

===============================================================================

Rationale

The ratings on Tokio Marine Insurance Singapore Ltd. (TM Singapore) reflect

the company's strategically important role to its parent, Tokio Marine &

Nichido Fire Insurance Co. Ltd. (Tokio Marine; local currency

AA-/Negative/A-1+). The ratings also reflect TM Singapore's sound

capitalization, and moderately strong operating performance and investment

profile. TM Singapore's significant, but reducing, exposure to risky assets

and the company's modest market position in Singapore's competitive general

insurance market partly offset these strengths.

We believe TM Singapore is strategically important to Tokio Marine as the

group expands in Asia. TM Singapore has significant resourcing support from

Tokio Marine Asia Pte. Ltd., the group's regional headquarters, in areas such

as reinsurance, risk management, investment, and internal audits.

TM Singapore's capitalization remains strong and commensurate with its risk

profile based on our risk-based capital model. This is despite some weakening

in recent years. The company's ratio of shareholders' funds to net premium

income is 403% as of Dec. 31, 2011. We expect TM Singapore's capitalization to

remain strong amid its modest projected growth.

We consider TM Singapore's investment profile as moderately strong. The

company's significant exposure to risky assets--equities and properties

investment--moderate the strength. These assets accounted for about 25% of

total invested assets at the end of year 2011 and are subject to market

volatility.

TM Singapore's operating performance has improved to a moderately strong

level, largely due to the company management's control over underwriting risks

in recent years. TM Singapore's combined ratio was 85.7% in 2011. We expect

the company's underwriting performance to remain moderately strong over the

next one to two years. The improving performance of TM Singapore's motor and

workmen compensation businesses contributed to a better underwriting

performance in 2011. We expect the company's workmen compensation business and

motor business to have underwriting profits in 2012 compared with underwriting

losses in recent years. The management's effort to remove poor-quality

businesses supported the stronger underwriting performance in 2011. The

underwriting performance also benefited from the company's Japan-related

business that came from group referrals.

We consider TM Singapore's market position as modest due to the company's

limited growth potential in the competitive insurance market in Singapore. The

company's ranking in terms of Singapore insurance fund premiums is seventh,

with a market share of 3.6%. However, the combined market share of TM

Singapore's offshore and onshore business is modest in comparison with peers'.

We expect TM Singapore's premium income continue to grow over the next few

years but at a low single-digit rate. This is because the company is

increasingly focusing on risk selection and pricing adequacy.

Enterprise risk management

We assess Tokio Marine Group's enterprise risk management (ERM) as strong,

driven by a strong risk management culture, risk controls, risk models, and

strategic risk management. The group's business expansion has increased the

diversity and complexity of the risks it underwrites. In addition, the group

is exposed to relatively large natural catastrophe risks, as reflected in its

recent operating performances. As a result, we consider the importance of the

risk management system to the rating on the group as high.

Our assessment of TM Singapore's ERM on a stand-alone basis reflects the

company's developing ERM framework and increasing integration with the wider

group. In line with the group's risk management policy, the company's risk

management framework sets out the principle and risk management structure. TM

Singapore's management committee, which also functions as the risk management

committee, reviews the company's underwriting, investment, and pricing risk

exposures quarterly and updates the board.

We expect TM Singapore's risk management to be further integrated across

different departments through the evolution of risk management practices

within the parent group. We view the company's risk management approach as

relatively traditional and silo-based. However, we expect the roll out of the

parent's internal capital model framework to enhance the company's overall

appreciation of risk.

Outlook

The negative rating outlook on TM Singapore reflects the outlook on the

parent. We expect TM Singapore to maintain its strategically important status

within the group.

We may lower the rating on TM Singapore if we lower the rating on the parent.

TM Singapore's stand-alone credit profile has received additional notching due

to the parent's support. We expect TM Singapore's stand-alone credit profile

to remain stable. We may revise the outlook on TM Singapore to stable if the

rating outlook on its parent is revised to stable.

Related Criteria And Research

-- Refined Methodology And Assumptions For Analyzing Insurer Capital

Adequacy Using The Risk-Based Insurance Capital Model, June 7, 2010

-- Interactive Ratings Methodology, April 22, 2009

-- Group Methodology, April 22, 2009

Source: http://news.yahoo.com/text-p-summary-tokio-marine-insurance-singapore-ltd-105013185--sector.html

pnc Charlie Strong Calendar 2013 john boehner HGTV Dream Home 2013 eric cantor eric cantor