Mitsui Sumitomo Insurance boasts strong capital base: AM Best

Thanks to its resilient capital base and strategic equity disposal plans.

Mitsui Sumitomo Insurance (MSI) showed a robust balance sheet strength, evaluated as strongest by AM Best’s Capital Adequacy Ratio (BCAR). This was supported by low financial leverage and high-quality capital. 

Despite significant equity and interest rate risks, MSI’s resilient capital base and strategic equity disposal plans help mitigate these risks. 

MSI’s strong operating performance, marked by a five-year average adjusted return on equity of 5.4%, and its strong market position in Japan and abroad, further support its ratings.

MSI’s parent, MS&AD Insurance Group Holdings, Inc. (MS&AD), benefits from a solid balance sheet, ample capital, and high financial flexibility, enabling MSI’s access to capital and debt markets.

Aioi Nissay Dowa Insurance’s (ADI) ratings reflect similar strengths in balance sheet stability, with a BCAR score at the strongest level, and strong operating performance, demonstrated by a five-year average return on equity of 3.3%. 

ADI’s performance has been bolstered by investment income and strategic initiatives, despite challenges from domestic market losses. ADI's strong market position in Japan, supported by partnerships with Toyota Motor Corporation and Nippon Life Insurance Company, is a key strength.

Aioi Nissay Dowa Insurance (China) Company (ADIC)’s ratings reflect very strong balance sheet strength, adequate operating performance, and strategic importance to ADI.

Its capitalisation is bolstered by moderate underwriting leverage and a conservative investment strategy, with a significant capital injection in 2022. 

ADIC focuses on personal lines business in China, primarily Toyota-related motor insurance, and aims for top-line growth through strategic partnerships.