The ratings reflect Nissay's leading market position in the Japanese life industry, its robust risk-adjusted capitalization and proactive business strategy. Nissay's market share remained stable at around 16 percent (in terms of annualized premium equivalent excluding
The company's adjusted capital and surplus (non-consolidated), which includes net asset value and other reserves (contingency reserves and price fluctuation reserves), rose 43 percent to
Partially offsetting these positive factors include the company's high exposure to the financial market volatility and the moderate growth outlook in the domestic life insurance market. Although the company continued to reduce its investment in stocks in terms of book value in the past five years, its exposure to stocks remains high compared to its adjusted capital and surplus. The policy in- force amount of the life insurance industry is expected to report a continuous decline, which puts pressure on the company's profitability.
While there is no positive movement in the ratings considered in the short term, negative rating actions could occur if there is a material deterioration in the company's risk-adjusted capitalization triggered by adverse financial market movements.
The affirmation of NLB's ratings reflects the operational and financial support from its parent company, Nissay, a favorable risk- adjusted capital position and an established position in
NLB primarily markets group major medical products to the U.S. operations of Japanese companies, as well as other companies in
The methodology used in determining these interactive ratings is Best's Credit Rating Methodology, which provides an explanation of
Best's Credit Rating Methodology:
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