R&I Rating Methodology by Sector
|
|
- Patience Andrews
- 8 years ago
- Views:
Transcription
1 R&I Rating Methodology by Sector Life Insurance October 31, 2013 R&I applies its rating methodology for life insurance to life insurance companies that provide death benefits centered on mortality insurance and living benefits such as medical insurance and individual annuities, in Japan and abroad. For the leading overseas insurance groups, which frequently manage life and non-life insurance products, R&I performs a comprehensive evaluation after separately evaluating each business domain using its rating methodologies for life insurance and non-life insurance, among others. I. Evaluation of Industry Risk 1. View of industry risk Life insurance, which is defined in the Insurance Business Act as insurance where insurance premiums are received under contracts to pay a fixed amount of insurance claims in connection with the survival or death of individuals, is used mainly as one means to compensate households for an economic loss. In addition, life insurance companies frequently also handle insurance to pay a certain insurance benefit pertaining to personal injury or illness (so-called third sector insurance). Because of the nature of the product, life insurance is less subject to price competition, and given that insurers are characterized by low liquidity risk because funds are raised mainly through premiums that are paid under long-term policies, there is low industry risk. In fact, however, around 2000 there were successive insurance company failures in Japan involving life insurance companies that were holding excessive risk. The most recent insurer to close its doors was Yamato Mutual Life Insurance Co., which failed in These insurers generally suffered from weak risk management and limited awareness of ALM (asset and liability management), and had formed ill-balanced portfolios. One trait that can be said to have been shared by many of these insurers was the aggressive risk-taking pursued by top management, compounded by weak check and balance. Compared with the situation several years ago, life insurers risk management is greatly improved, but R&I must always pay careful attention to the management factors that pushed life insurers into bankruptcy despite the fact the industry 1/10
2 generally has low risk. (1) Market size, market growth potential and market volatility Worldwide, insurance premiums fundamentally continue to grow. Products in the annuity and medical care sectors in particular have become engines of growth, not only in Asia and other emerging markets where population growth is remarkable, but in advanced country markets as well, where demand is driven by factors such as aging, and there remains room for growth despite the market being mature. Japan s life insurance premium payments (including postal life insurance) exceed 30 trillion yen, making it the world s second largest market after the U.S. Assets have reached 300 trillion yen. Because growth of the living benefits sector can be anticipated as aging of the population and cutbacks in social security continue in Japan, the decline in the working age population will not necessarily lead directly to a contraction of the life insurance market. As a result, a sales focus continues to shift from death benefits to living benefits such as medical insurance that are highly profitable, and earnings from life insurance have not decreased very much. Although growth potential is low, R&I does not envisage the size of the life insurance market will contract significantly. The market for protection-type products such as mortality insurance and medical insurance is centered on long-term policies and is not sensitive to interest rates. Therefore market volatility is low. On the other hand, the market for annuities and other savings-based products is highly sensitive to interest rates, and compared with protection-type products, market volatility is greater as well. The market weighting of protection-type products and savings-based products differ by country and region, with protection-type products accounting for an especially high proportion of all insurance products in Japan. (2) Industry structure (competitive environment) Regulations in each country strongly influence the industry structure and competitive environment for life insurance. The influence of regulations pertaining to pricing, such as rules for premium rates and provisioning of policy reserves, in particular is substantial. In general, for life insurance, the components corresponding to safety loading and costs are incorporated into insurance premiums beforehand, providing a business structure that makes it easy to ensure earnings. In particular, safety loading for life insurance products in Japan is determined based on 2/10
3 standard premium rates that are set by law, making it difficult to engage in price competition. Life insurers accumulate policy reserves based on extremely conservative standard mortality rates provided by law (standard policy reserves), which also makes price competition difficult. Compared with Japan, price competition is more vigorous in Europe and the U.S., where insurance rates have been deregulated and traditional products have developed into commodity products. While Japan s life insurance market is served by about 40 companies, when viewed on the basis of premiums, the top-ranking insurance companies have achieved substantial oligopolization, and competitive conditions are not necessarily more severe than in Europe or the U.S. The overseas life insurance market is comprised of numerous players, and given the competitive environment is affected significantly by factors such as state regulations and regulations on market entry, R&I must evaluate each country and region separately. (3) Customer continuity and stability The customer base is comparatively stable. In addition to the long-term nature of insurance policies, this reflects the fact the life insurance industry offers numerous products with mechanisms such as surrender charges during the initial policy period. In markets such as Europe and the U.S., which have investment-type products and life insurance that have evolved into a commodity product, it is relatively easy to switch to another company. Compared with Europe and the U.S., the life insurance market in Japan is centered on long-term protection-type products, and therefore customer continuity and stability are high despite a certain level of surrenders during the initial policy period. (4) Protection, regulations and public aspects R&I s evaluation of protection and regulations differs depending on the regulatory framework and intentions and capabilities of the supervisory authorities charged with maintaining the system s soundness in a country or region. While review of insurance regulatory frameworks is progressing globally, including the introduction of Solvency II in Europe and the tightening of regulations on global systemically important insurers by the IAIS (International Association of Insurance Supervisors), R&I reflects this trend in its ratings by basing its evaluations on each country s thinking regarding bankruptcy procedures and its intention and capacity to support failed insurers. For insurance companies in Japan, regulations on management soundness that utilize the 3/10
4 solvency margin ratio as a basic indicator have been enacted, and bankruptcy procedures under the Insurance Business Act and the Act on Special Treatment of Corporate Reorganization Proceedings and Other Insolvency Proceedings of Financial Institutions are in place. The Life Insurance Policyholders Protection Corporation of Japan has been established as a mechanism to protect policyholders in the event of an insurer s bankruptcy. In comparison with the robust safety net for depositary financial institutions that is aimed at the stability of the financial system, however, the institution is weak. 2. View of Individual Firm Risk (1) Franchise 1) Position and competitiveness in the market The death coverage that has traditionally supported life insurers earnings, together with the high-growth, high-margin third sector, form the heart of R&I s evaluation of a life insurer s franchise. R&I judges the stability of the business by examining the value of the customer base and ability to sell new insurance policies. A life insurance company that can be highly assessed in terms of position and competitiveness in the market will be a company that has the following. A sizeable, stable customer base built over a long period (or through a merger or consolidation) A high market share in its core death coverage market A certain share of a third sector insurance product market with high growth and profitability Avoidance of price competition and maintenance of profitability on key products Attractive pricing aspects such as policyholder dividends Excellent brand power, etc. 2) Sales channels An insurer s sales channels play an extremely large role in enhancing its competitiveness and realizing the value of its franchise. In its rating evaluations, R&I takes into consideration each company s sales channel strategy and the productivity of its key sales channels, and focuses on whether these are contributing to the utilization of its customer base. Specifically, it is important for an insurer to have, for example, a highly productive dedicated sales channel and/or a successful multi-channel strategy. A highly productive dedicated sales channel employs a large high quality, highly stable sales team, rather than a structure that relies on mass hiring and a high rate of sales staff turnover. Such a channel 4/10
5 will have a high number of new policies and insurance premiums per sales agent, as well as a high policy retention rate. On the other hand, a multi-channel strategy, which has been adopted by the leading overseas insurance groups with few exceptions, is a strategy of maintaining several strong sales networks corresponding to customer attributes. With the presence of new sales channels including financial institutions, sales agencies, and insurance stores expanding in Japan as well, life insurers that intend to pursue a multi-channel strategy can also be expected to increase in the future. (2) Risk profile / risk appetite The risk profile, which highlights how an insurer is taking the main risks as it continues its operations, is a factor that will determine the future change in financial risk (risk resilience, earning capacity and liquidity as explained later). In its evaluation of risk appetite, R&I focuses primarily on an insurer s risk-taking policies toward various risks (insurance underwriting, market risk, and the risk from concentration of investments in major obligors or industries), and the complexity of the risks in conjunction with business and regional diversification. Verifying the risk profile/risk appetite stability based on an enterprise risk management (ERM) system is indispensable as well. Critical judgment parameters include whether the major risks are shared and recognized appropriately among the management team, whether the processes and methodologies for monitoring risks are reasonable, and whether insurance product pricing decisions and the strategies for ALM and asset investment are aligned with the risk appetite and risk profile. II. Evaluation of Financial Risk (1) Risk resilience 1) Buffer against risk When considering the risks facing life insurers, R&I will verify the adequacy of the buffer to absorb the risks. Buffer against risk = Risk buffer (net assets, various reserves, etc.) Total risk Under current insurance accounting, assets (securities, etc.) are marked to market, and 5/10
6 insurance obligations that represent the majority of liabilities are accounted for at acquisition cost (based on pricing assumptions at the time of policy conclusion). Consequently, life insurers equity capital on an accounting basis will diverge substantially from the value on an economic value (market-consistent evaluation) basis. Because premiums are recognized on a cash basis and costs are recognized on an accrual basis under insurance accounting, the time gap between revenue and expense is a problem as well. The acquisition of new policies temporarily puts pressure on life insurers solvency margin because costs mount when policies are obtained. On an economic value basis, the business activity is reflected directly in a company s value because in addition to new policy acquisition costs, the future profit contribution is recognized at the time new policies are acquired. Spurred by changes such as Europe s Solvency II regulation, the Financial Services Agency in Japan also is investigating the introduction of an economic value basis solvency regulation. When assessing the risk resilience of life insurance companies, R&I takes both accounting basis and economic value basis into consideration. However, at present an insurance company will not be bankrupt even if its capital on an economic value basis has become negative. Supervisory standards such as SMR that are designed to ensure soundness conform to current accounting practices, and capital on an accounting basis cannot be disregarded. For insurers with a low rating level in particular, R&I has to consider risk resilience on an accounting basis that is largely in line with the industry supervisory standards. *Risk resilience on an accounting basis R&I s computation methodology is outlined below. For the risk buffer value used as the numerator, R&I introduces asset and liability correction factors that it adds to net assets (excluding valuation difference), the reserve for price fluctuations and the contingency reserve. The main adjustments are for items such as unrealized gains or losses on assets (to conservatively evaluate asset prices, etc.) and the excess of the continued Zillmerized reserve. Although mutual companies foundation funds and subordinated loans basically are not evaluated, in the case of an insurer with a low rating, foundation funds are included to a certain extent as a supplemental buffer. Unrealized gains and losses on bonds are not included in the risk buffer. The reason is that life insurers guarantee the assumed interest rate to policyholders, and the negative spread will become burdensome in the future if the unrealized gains on bonds are used as the risk buffer. 6/10
7 For volume of risk, R&I basically utilizes the items used for calculation of the SMR with conservative adjustments for domestic and foreign regulation trends, while referring to the numerical values of each company s internal model. For risk measurement, R&I uses a 99.5% confidence interval as a yardstick for insurers rated in the BBB category. When evaluating risk resilience, R&I focuses on the risk buffer including unrealized gains and losses on equities. Risk resilience is susceptible to fluctuations in share prices when unrealized gains and losses on equities are counted, however. Therefore it is critical to also analyze capital quality, such as the weight of stock holdings in the risk buffer, and the results of stress tests. In this case, R&I makes its evaluation based on a review of the contents of contingency plans, risk management effectiveness, risk control policies, the results of each company s stress tests and other factors. *Risk resilience on an economic value basis R&I evaluates risk resilience on an economic value basis by taking into consideration regulatory trends in Japan and other countries and the condition of the insurance company s internal ERM and various risk measurements. Risk resilience on an economic value basis exhibits greater volatility than risk resilience on an accounting basis. Furthermore, when viewed for the entire industry there is considerable room for improving risk measurement methodologies. Therefore together with continually monitoring each company s progress in improving the precision and sophistication of its internal model, R&I incorporates into its ratings the extent to which a company will progress over the intermediate term with efforts to control changes in its risk resilience, while taking into consideration the company s risk-taking policies, risk mitigation program and the effectiveness of its ERM. 2) Risk/equity capital management structures As a means of supplementing the quantitative indicators discussed in 1) above, R&I qualitatively evaluates an insurance company s ability to maintain its risk resilience in the future. It does this by confirming how the insurer evaluates, recognizes and allocates its equity capital (and free surplus). The viewpoints taken during the equity capital evaluation process, including whether the insurer is able to comprehensively and correctly recognize risks, whether it is able to utilize knowledge it has obtained through its business activities to constantly verify business risks that 7/10
8 could have significant impacts on its operations, and whether its measures to cope with a situation when a risk is realized are appropriate, are an important element for evaluating the risk/equity capital situation. The degree to which management is aware of and focused on risk management, the positions of the Chief Risk Officer (CRO) and risk manager within the insurance company and their ability to speak out on and affect operations, are also important considerations. These points become even more significant for the evaluation of insurance groups that are moving forward with business diversification and regional spread. (2) Earning capacity 1) Three major sources of profit and loss relative to annualized premiums on in-force policies As discussed earlier, R&I emphasizes risk resilience on an economic value basis, and looks to earning capacity based on mortality margins, expense margins and investment margins, the three major sources of profit and loss, as a clue. The three major sources of profit and loss are simply part of the risk margin (in-force cash flows) and are expected to be absorbed in the evaluation of risk resilience on an economic value basis in the future. Specifically, R&I will seek to the extent possible to understand the structure of the assets and liabilities of each company from data such as the three sources of profit and loss, the average assumed interest rate, and duration (assets and liabilities). Among the three major sources of profit and loss, R&I will correct the investment margin to the domestic bond interest rate base because the investment margin frequently is inflated from investment sources such as foreign bond investments. R&I also deducts any group annuity investment margin and the amount required for interest payments. R&I looks at average earning capacity by using the profit margin for annualized insurance premiums on policies in force for personal insurance. 2) Quality and stability of earnings In recent years, more life insurance companies are increasing the weight of products that tend to experience rapid changes in sales and make a low profit contribution, such as variable annuity insurance and single premium whole life insurance. Therefore it is also important for R&I to evaluate the stability of profitability by looking at factors such as debt structure and profit contribution. Key points R&I will examine include (1) whether a company has achieved an asset and liability structure that is less susceptible to changes in the economy or the financial and capital markets and enables the company to ensure stable profits, (2) whether a company handles 8/10
9 traditional insurance products with a high profit contribution that enable it to stably report high insurance-related margins, (3) whether a company has achieved earnings diversification by region and business line, and (4) whether a company has been able to maintain and stably expand its highly profitable third sector business. Understanding the profitability of individual insurance products is essential as well. Because of the effect of improved mortality rates, traditional death benefits have generated a level of earnings that exceeds the earning (profit margin) that was initially assumed. On the other hand, while the profitability of the growing third sector insurance is high compared with death benefits, there is a concern that over the medium to long-term the payment rate (rate of incidence) will deteriorate as a result of price competition and advances in medical technology, and earnings will weaken. R&I will comprehend future earnings projections based on factors such as the status of divergence between the assumed payment rate and actual payouts, pricing review rules and their observance, and policies to address issues such as product revisions. (3) Liquidity Liquidity is one of the critical parameters that act as a trigger for the final bankruptcy of a financial institution. Japanese life insurance companies enjoy excellent liquidity risk resilience, with stable premium income prospects and ample negotiable assets. This point is a major factor supporting their ratings. 1) Highly liquid liabilities / highly liquid assets The risk of surrenders of group and individual annuities when interest rates are rising accounts for the major portion of liquidity risk for life insurers. R&I evaluates liquidity by examining the asset and liability structure and ALM policy of each company from viewpoints such as the extent to which the company can cover its policy reserves for group annuities and individual annuities, which may suffer from cash-outs during periods when interest rates rise, with highly liquid assets such as bonds. During Japan s prolonged period of low interest rates, however, actual data concerning the behavior of policyholders when interest rates increase has not been sufficiently accumulated, and there remains significant room for further elaboration of quantitative evaluations. 9/10
10 2) Liquidity risk management structures R&I evaluates an insurer s ability to maintain liquidity in future years. The main viewpoints in this regard are to what extent stable premium income can be anticipated and whether a company has prepared its management methodology, reporting methods and settlement procedures and been able to secure the necessary means of funding according to the severity of a cash crunch (normal periods, periods of heightened concern and crisis periods). III. Rating for Life Insurance Industry Issuer Rating / Insurance Claims Paying Ability Individual Firm Risk Financial Risk Importance Indicator Importance Franchise Position and competitiveness in the Risk resilience Buffer against risk market Risk/equity capital management structures Sales channels Earning capacity Three major sources of profit and loss relative to Risk profile / risk appetite annualized premiums on in-force policies Quality and stability of earnings Liquidity Highly liquid liabilities / highly liquid assets Liquidity risk management structures Industry Risk: Low Note) Importance is indicated by : extremely important, : important, or relatively important. * This report replaces all previous versions that have been released to date. The Rating Determination Policy and the Rating Methodologies R&I uses in connection with evaluation of creditworthiness (collectively, the "Rating Determination Policy and Methodologies") are R&I's opinions prepared based on R&I's own analysis and research, and R&I makes no representation or warranty, express or implied, as to the accuracy, timeliness, adequacy, completeness, merchantability, fitness for any particular purpose, or any other matter with respect to the Rating Determination Policy and Methodologies. Further, disclosure of the Rating Determination Policy and Methodologies by R&I does not constitute any form of advice regarding investment decisions or financial matters or comment on the suitability of any investment for any party. R&I is not liable in any way for any damage arising in respect of a user or other third party in relation to the content or the use of the Rating Determination Policy and Methodologies, regardless of the reason for the claim, and irrespective of negligence or fault of R&I. All rights and interests (including patent rights, copyrights, other intellectual property rights, and know-how) regarding the Rating Determination Policy and Methodologies belong to R&I. Use of the Rating Determination Policy and Methodologies, in whole or in part, for purposes beyond personal use (including reproducing, amending, sending, distributing, transferring, lending, translating, or adapting the information), and storing the Rating Determination Policy and Methodologies for subsequent use, is prohibited without R&I's prior written permission. Japanese is the official language of this material and if there are any inconsistencies or discrepancies between the information written in Japanese and the information written in languages other than Japanese the information written in Japanese will take precedence. 10/10
Rating Methodology by Sector. Life Insurance
Last Updated: July 1, 2013 Rating Methodology by Sector Life Insurance The following mainly applies to life insurance companies in Japan. The credit ratings of a life insurance company is assessed by focusing
More informationR&I Rating Methodology by Sector
R&I Rating Methodology by Sector Electric Wires and Cables December 3, 2013 R&I applies this rating methodology to electric wire and cable manufacturers that position three sectors "electric wires and
More informationRating Methodology by Sector. Life Insurance
Last Updated: March 26, 2012 Rating Methodology by Sector Life Insurance *This rating methodology is a modification of the rating methodology made public on July 13, 2011, and modifications are made to
More informationR&I Rating Methodology by Sector
R&I Rating Methodology by Sector Logistics Companies June 9, 2014 R&I applies this rating methodology to logistics companies whose main businesses are in segments such as charter trucking operations, warehouse
More informationR&I's Analytical Approach to Financial Congromerates
R&I's Analytical Approach to Financial Congromerates (This report is an English translation of the original report in Japanese.) 1. The Framework of Rating Evaluation The main steps for R&I's evaluation
More informationRating Methodology by Sector. Non-life Insurance
Last updated: July 1, 2013 Rating Methodology by Sector Non-life Insurance The following mainly applies to non-life insurance companies in Japan. When determining the credit rating of a non-life insurance
More informationRating Methodology by Sector. Non-life Insurance
Last updated: March 26, 2012 Rating Methodology by Sector Non-life Insurance *This rating methodology is a modification of the rating methodology made public on July 13, 2011, and modifications are made
More informationEvaluation on Hybrid Capital of Life Insurance Companies
06-D-417 September 1, 2006 Evaluation on Hybrid Capital of Life Insurance Companies Japan Credit Rating Agency (JCR) has summarized below the basic perspectives and standards for the evaluation of hybrid
More informationGeneral Trading Companies
Last upated: July 13, 2011 Rating Methodology by Sector General Trading Companies General trading companies operate in a broad array of industries, including metals, energy, machinery, food, chemicals,
More informationRating Methodology for Domestic Life Insurance Companies
Rating Methodology for Domestic Life Insurance Companies Introduction ICRA Lanka s Claim Paying Ability Ratings (CPRs) are opinions on the ability of life insurance companies to pay claims and policyholder
More informationNEWS RELEASE. R&I Affirms Ratings: 4 Major Life Insurers & Subsidiary Insurers
R&I Affirms Ratings: 4 Major Life Insurers & Subsidiary Insurers Rating and Investment Information, Inc. (R&I) has announced the following: Oct 13, 2011 : AA, Affirmed Commercial Paper: a-1+, Affirmed
More informationR&I Rating Methodology by Sector
R&I Rating Methodology by Sector Medical Devices August 8, 2013 The term medical devices refers to equipment and apparatus that are used for the diagnosis and treatment of illnesses, or function as part
More informationNew York Life Insurance Co. 'AA+/A-1+' Rating Affirmed On Criteria Review; Outlook Stable
Research Update: New York Life Insurance Co. 'AA+/A-1+' Rating Affirmed On Criteria Review; Outlook Stable Primary Credit Analyst: Michael E Gross, San Francisco (1) 415-371-5003; michael.gross@standardandpoors.com
More informationCharlene Hamrah (Investment Community) (212) 770-7074 Joe Norton (News Media) (212) 770-3144
Contact: Charlene Hamrah (Investment Community) (212) 770-7074 Joe Norton (News Media) (212) 770-3144 AIG REPORTS FIRST QUARTER 2006 NET INCOME OF $3.20 BILLION NEW YORK, NY, May 10, 2006 American International
More informationAs of July 1, 2013. Risk Management and Administration
Risk Management Risk Control The ORIX Group allocates management resources by taking into account Group-wide risk preference based on management strategies and the strategy of individual business units.
More informationPrivate Sector Life Insurance Companies and the Mutual Insurance Business of the Agricultural Cooperatives (JA-kyosai)
Private Sector Life Insurance Companies and the Mutual Insurance Business of the Agricultural Cooperatives (JA-kyosai) 1. Introduction This report is the 2003 edition of the analysis of the life insurance
More informationSOA Annual Symposium Shanghai. November 5-6, 2012. Shanghai, China. Session 2a: Capital Market Drives Investment Strategy.
SOA Annual Symposium Shanghai November 5-6, 2012 Shanghai, China Session 2a: Capital Market Drives Investment Strategy Genghui Wu Capital Market Drives Investment Strategy Genghui Wu FSA, CFA, FRM, MAAA
More information(Unofficial Translation) Acquisition of Protective Life Corporation Conference Call for Institutional Investors and Analysts Q&A Summary
(Unofficial Translation) Acquisition of Protective Life Corporation Conference Call for Institutional Investors and Analysts Q&A Summary Date: June 4, 2014 16:00-17:00 Respondent: Seiji Inagaki, Executive
More information2. The European insurance sector
2. The European insurance sector Insurance companies are still exposed to the low interest rate environment. Long-term interest rates are especially of importance to life insurers, since these institutions
More informationINSURANCE RATING METHODOLOGY
INSURANCE RATING METHODOLOGY The primary function of PACRA is to evaluate the capacity and willingness of an entity / issuer to honor its financial obligations. Our ratings reflect an independent, professional
More informationGuardian Life Insurance, Core Operating Subsidiaries 'AA+' Ratings Affirmed On Criteria Review, Outlook Negative
Research Update: Guardian Life Insurance, Core Operating Subsidiaries 'AA+' Ratings Affirmed On Criteria Review, Outlook Negative Primary Credit Analyst: Neal I Freedman, New York (1) 212-438-1274; neal.freedman@standardandpoors.com
More informationGE Financial Assurance Holdings, Inc. (Exact name of registrant as specified in its charter)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended
More informationThe financial activities of insurance companies
The financial activities of insurance companies Photo credit: Scott Olson/Reportage In line with stock market appreciation and further cuts in interest rates, unrealized capital gains on insurance company
More informationSUMITOMO LIFE INSURANCE COMPANY (security code: -)
Japan Credit Rating Agency, Ltd. (JCR) announces the following credit rating. 15-D-0742 December 11, 2015 SUMITOMO LIFE INSURANCE COMPANY (security code: -) Long-term Issuer Rating: A+ Outlook:
More informationResearch Update: Banco Monex S.A. Rated Global Scale 'BB+/B', National Scale 'mxa+/mxa-1' Rating Affirmed. Table Of Contents
May 17, 2012 Research Update: Banco Monex S.A. Rated Global Scale 'BB+/B', National Scale 'mxa+/mxa-1' Rating Affirmed Primary Credit Analyst: Arturo Sanchez, Mexico City (52) 55-5081-4468;arturo_sanchez@standardandpoors.com
More informationRegulatory Administration of Life Insurers
Regulatory Administration of Life Insurers 1. Introduction Mark-to-market accounting has been introduced from fiscal 2000. At the same time, the Financial Services Agency (FSA) has begun to enforce stricter
More informationR&I's Basic Methodology for Corporate Credit Ratings
R&I's Basic Methodology for Corporate Credit Ratings May 1, 2015 Chapter 1 Overview of the Rating Methodology This rating methodology provides the basis for assigning ratings to corporations. Corporations
More informationModelling and Management of Tail Risk in Insurance
Modelling and Management of Tail Risk in Insurance IMF conference on operationalising systemic risk monitoring Peter Sohre, Head of Risk Reporting, Swiss Re Washington DC, 27 May 2010 Visit of ntuc ERM
More informationChina Life Insurance Co. Ltd.
Primary Credit Analyst: Connie Wong, Singapore (65) 6239-6353; connie_wong@standardandpoors.com Secondary Contact: Philip P Chung, CFA, Singapore (65) 6239-6343; philip_chung@standardandpoors.com Table
More informationMML Bay State Life Insurance Company Management s Discussion and Analysis Of the 2005 Financial Condition and Results of Operations
MML Bay State Life Insurance Company Management s Discussion and Analysis Of the 2005 Financial Condition and Results of Operations General Management s Discussion and Analysis of Financial Condition and
More informationEnterprise Risk Management in a Highly Uncertain World. A Presentation to the Government-University- Industry Research Roundtable June 20, 2012
Enterprise Risk Management in a Highly Uncertain World A Presentation to the Government-University- Industry Research Roundtable June 20, 2012 CRO Council Introduction Mission The North American CRO Council
More informationPreliminary Consolidated Financial Results for the Six Months Ended September 30, 2012 (Prepared in Accordance with Japanese GAAP)
November 1, 2012 Sony Financial Holdings Inc. Preliminary Consolidated Financial Results for the Six Months Ended September 30, 2012 (Prepared in Accordance with Japanese GAAP) Tokyo, November 1, 2012
More informationKENTUCKY EMPLOYERS' MUTUAL INSURANCE AUTHORITY dba KENTUCKY EMPLOYERS' MUTUAL INSURANCE
KENTUCKY EMPLOYERS' MUTUAL INSURANCE AUTHORITY dba KENTUCKY EMPLOYERS' MUTUAL INSURANCE Statutory Basis Financial Statements and Supplementary Information Years Ended December 31, 2010 and 2009 with Independent
More informationFinancial Review. 16 Selected Financial Data 18 Management s Discussion and Analysis of Financial Condition and Results of Operations
2011 Financial Review 16 Selected Financial Data 18 Management s Discussion and Analysis of Financial Condition and Results of Operations 82 Quantitative and Qualitative Disclosures About Market Risk 90
More informationFINANCIAL REVIEW. 18 Selected Financial Data 20 Management s Discussion and Analysis of Financial Condition and Results of Operations
2012 FINANCIAL REVIEW 18 Selected Financial Data 20 Management s Discussion and Analysis of Financial Condition and Results of Operations 82 Quantitative and Qualitative Disclosures About Market Risk 88
More informationNote: Amounts of less than one million yen are truncated, and percentages have been rounded to the nearest percent.
Consolidated Financial Summary (For the fiscal year 2002 ended March 31, 2003) May 22, 2003 Name of Company: Taiyo Life Insurance Company Stock Listing: Tokyo Security Code No.: 8796 Head Office: Tokyo,
More informationPNB Life Insurance Inc. Risk Management Framework
1. Capital Management and Management of Insurance and Financial Risks Although life insurance companies are in the business of taking risks, the Company limits its risk exposure only to measurable and
More informationChina Life Insurance Co. Ltd.
December 30, 2010 China Life Insurance Co. Ltd. Primary Credit Analyst: Eunice Tan, Hong Kong (852) 2533 3553; eunice_tan@standardandpoors.com Secondary Contact: Ryan Tsang, CFA, Hong Kong (852) 2533-3532;
More informationDisclosure of European Embedded Value as of March 31, 2015
UNOFFICIAL TRANSLATION Although the Company pays close attention to provide English translation of the information disclosed in Japanese, the Japanese original prevails over its English translation in
More informationData Compilation Financial Data
Data Compilation Financial Data CONTENTS 1. Transition of Significant Management Indicators, etc. Japan Post Group (Consolidated) 122 Japan Post Holdings Co., Ltd. (Non-consolidated) 122 Japan Post Co.,
More informationMain Business Indicators
Supplementary Financial Data Main Business Indicators (1) Policies in Force and New Policies 1) Policies in Force (Number of policies, millions of yen, %) As of March 31 2015 2014 Individual insurance
More informationMeiji Yasuda Life Insurance Company (security code: -)
Japan Credit Rating Agency, Ltd. (JCR) announces the following credit rating. 15-D-0741 December 11, 2015 Meiji Yasuda Life Insurance Company (security code: -) Long-term Issuer Rating: A+
More informationGuidance for the Development of a Models-Based Solvency Framework for Canadian Life Insurance Companies
Guidance for the Development of a Models-Based Solvency Framework for Canadian Life Insurance Companies January 2010 Background The MCCSR Advisory Committee was established to develop proposals for a new
More informationAsia Insurance Co. Ltd.
Primary Credit Analyst: Eunice Tan, Hong Kong (852) 2533-3553; eunice.tan@standardandpoors.com Secondary Contact: Mark Li, Beijing (861) 6569-2998; mark.haihu.li@standardandpoors.com Table Of Contents
More informationNEWS RELEASE. R&I Affirms Ratings: 3 Major P&C Insurance Groups. Rating and Investment Information, Inc. (R&I) has announced the following:
May 14, 2014 R&I Affirms Ratings: 3 Major P&C Insurance Groups Rating and Investment Information, Inc. (R&I) has announced the following: SEC. COMPANY NAME CODE ---- Tokio Marine & Nichido Fire Insurance
More informationFiscal 2013 Financial Results
[Unofficial translation] Fiscal 2013 Financial Results (Summary) May 26, 2014 Meiji Yasuda Life Insurance Company 1. Premium Income Breakdown of premium income Premium and other Income 3,616.2 1.2% 3,659.3
More informationBank of Japan Review. Japanese Life Insurance Companies' Balance-Sheet Structure and Japanese Government Bond Investment. February 2013.
Bank of Japan Review 213-E-2 Japanese Life Insurance Companies' Balance-Sheet Structure and Japanese Government Bond Investment Financial System and Bank Examination Department Kazutoshi Kan, Yoshiyuki
More informationMS&AD Insurance Group Holdings 2 nd Information Meeting of FY 2015 (Held on November 25, 2015) Q&A Session Summery
MS&AD Insurance Group Holdings 2 nd Information Meeting of FY 2015 (Held on November 25, 2015) Q&A Session Summery Below is a summery of Q&A session from the Information Meeting held on November 25, 2015
More informationAssessing Sources of Funding for Insurance Risk Based Capital
Assessing Sources of Funding for Insurance Risk Based Capital Louis Lee Session Number: (ex. MBR4) AGENDA for Today 1. Motivations of Capital Needs 2. Practical Risk Based Capital Funding Options 3. Types
More informationForward Looking Statements 2. Condensed Consolidated Financial Statements
Mutual of Omaha Insurance Company and Subsidiaries Executive Summary and Analysis of Financial Condition as of September 30, 2015 and December 31, 2014 and Results of Operations for the Nine Months Ended
More informationMassMutual Whole Life Insurance
A Technical Overview for Clients and their Advisors MassMutual Whole Life Insurance The product design and pricing process Contents 1 Foreword 2 A Brief History of Whole Life Insurance 3 Whole Life Basics
More informationASR Nederland NV Assigned 'BBB+' Rating; Ratings On Core Insurance Operations Affirmed; Outlook Stable
Research Update: ASR Nederland NV Assigned 'BBB+' Rating; Ratings On Core Insurance Operations Affirmed; Primary Credit Analyst: Oliver Herbert, London (44) 20-7176-7054; oliver.herbert@standardandpoors.com
More informationChecklist for Market Risk Management
Checklist for Market Risk Management I. Development and Establishment of Market Risk Management System by Management Checkpoints - Market risk is the risk of loss resulting from changes in the value of
More informationNews from The Chubb Corporation
News from The Chubb Corporation The Chubb Corporation 15 Mountain View Road P.O. Box 1615 Warren, New Jersey 07061-1615 Telephone: 908-903-2000 FOR IMMEDIATE RELEASE Chubb Reports 4th Quarter Net Income
More informationClaims Paying Ability Ratings for General Insurance Companies
Claims Paying Ability Ratings for General Insurance Companies ICRA's Claims Paying Ability Ratings (CPRs) for general insurance companies are opinions on their ability to honour policy-holder claims and
More informationMoody s Short-Term Insurance Financial Strength Ratings
November 1999 Special Comment Summary Contact New York Phone Robert Riegel 1.212.553.1653 Moody s Short-Term Insurance Financial Strength Ratings Moody s is introducing short-term insurance financial strength
More informationNew Developments in Overseas Insurance Business ~ Agreement to Acquire 100% Ownership of a Listed
New Developments in Overseas Insurance Business ~ Agreement to Acquire 100% Ownership of a Listed U.S. Life Insurance Group, StanCorp Financial Group, Inc. ~ July 24, 2015 Meiji Yasuda Life Insurance Company
More informationAsset Liability Management and Investment Seminar May 2012. Session1: Asset Allocation for Insurance Company Liability Driven Investment.
Asset Liability and Investment Seminar May 2012 Session1: Asset Allocation for Insurance Company Liability Driven Investment Genghui Wu Asset Liability Liability Driven Investment Genghui Wu FSA, CFA,
More informationVienna Insurance Group AG Wiener Versicherung Gruppe
Summary: Vienna Insurance Group AG Wiener Versicherung Gruppe Primary Credit Analyst: Johannes Bender, Frankfurt (49) 69-33-999-196; johannes_bender@standardandpoors.com Secondary Contact: Ralf Bender,
More informationData Compilation Financial Data
Data Compilation Financial Data CONTENTS 1. Transition of Significant Management Indicators, etc. Japan Post Group (Consolidated) 124 Japan Post Service Co., Ltd. (Non-consolidated) 125 Japan Post Holdings
More informationForward Looking Statements 2. Condensed Consolidated Financial Statements
Mutual of Omaha Insurance Company and Subsidiaries Executive Summary and Analysis of Financial Condition as of March 31, 2015 and December 31, 2014 and Results of Operations for the Three Months Ended
More informationFinancial Section (GAAP in Japan)
Financial Section (GAAP in Japan) C O N T E N T S 40 Five-Year Summary (Unaudited) 41 Management s Discussion and Analysis (Japan GAAP) 48 Segment Information Non-Life Insurance (Unaudited) 51 Segment
More informationNEWS RELEASE. Life Insurance Companies: R&I Affirmed Ratings
Life Insurance Companies: R&I Affirmed Ratings No.2003-PA-009 Sep 26, 2003 Rating and Investment Information, Inc. (R&I), has completed a review of the insurance claims paying ability (CPA) ratings and
More informationR.V.I. Guaranty Co. Ltd. And Subsidiaries 'BBB' Ratings Affirmed After Insurance Criteria Change; The Outlook Is Stable
Research Update: R.V.I. Guaranty Co. Ltd. And Subsidiaries 'BBB' Ratings Affirmed After Insurance Criteria Change; The Outlook Is Stable Primary Credit Analyst: David S Veno, New York (1) 212-438-2108;
More informationR&I Rating Methodology by Sector
R&I Rating Methodology by Sector Passenger Vehicles April 5, 2016 R&I applies this rating methodology to manufacturers of passenger vehicles in a broad sense, including light trucks and motorcycles. This
More informationNEWS RELEASE. No.2005-PA-002 Mar 11, 2005 8 Non-Life Insurance Companies: R&I Reviewed Ratings
No.2005-PA-002 Mar 11, 2005 8 Non-Life Insurance Companies: R&I Reviewed Ratings Rating and Investment Information, Inc. (R&I), has reviewed the following ratings. R&I RATINGS (For rating actions, please
More informationClaims Paying Ability / Financial Strength Rating Methodology for Insurance Companies
Claims Paying Ability / Financial Strength Rating Methodology for Insurance Companies CRAF s Claims Paying Ability (CPA) / Financial Strength Rating (FSR) is an opinion on an insurance company s financial
More informationDisclosure of Market Consistent Embedded Value as at March 31, 2015
May 20, 2015 Sompo Japan Nipponkoa Himawari Life Insurance, Inc. Disclosure of Market Consistent Embedded Value as at March 31, 2015 Sompo Japan Nipponkoa Himawari Life Insurance, Inc. ( Himawari Life,
More informationGLOSSARY. A contract that provides for periodic payments to an annuitant for a specified period of time, often until the annuitant s death.
The glossary contains explanations of certain terms and definitions used in this prospectus in connection with us and our business. The terms and their meanings may not correspond to standard industry
More informationProtective Life Corporation
August 4, 2011 Protective Life Corporation 2Q11 Earnings Results Conference Call Presentation Introduction In addition to the information contained in this presentation, we have certain supplemental financial
More informationSecuritized-Product Investment: Risk Management Perspectives *
- March 2008 Paper Series of Risk Management in Financial Institutions Securitized-Product Investment: Risk Management Perspectives * Financial Systems and Bank Examination Department Bank of Japan Please
More informationLIQUIDITY RISK MANAGEMENT GUIDELINE
LIQUIDITY RISK MANAGEMENT GUIDELINE April 2009 Table of Contents Preamble... 3 Introduction... 4 Scope... 5 Coming into effect and updating... 6 1. Liquidity risk... 7 2. Sound and prudent liquidity risk
More informationIceland-Based Non-Life Insurer Tryggingamidstodin Ratings Affirmed at 'BBB-'; Outlook Stable
Research Update: Iceland-Based Non-Life Insurer Tryggingamidstodin Ratings Affirmed at 'BBB-'; Outlook Stable Primary Credit Analyst: Anna Glennmar, Milan (39) 02-72111-252; anna.glennmar@standardandpoors.com
More informationDisclosure of European Embedded Value (summary) as of March 31, 2015
May 28, 2015 SUMITOMO LIFE INSURANCE COMPANY Disclosure of European Embedded Value (summary) as of March 31, 2015 This is the summarized translation of the European Embedded Value ( EEV ) of Sumitomo Life
More informationOn-Site Examination Policy for Fiscal 2016. Examination Policy for Fiscal 2016" briefly reviews on-site examinations carried out in
March 29, 2016 Bank of Japan On-Site Examination Policy for Fiscal 2016 1. On-Site Examination by the Bank of Japan The Bank of Japan (hereinafter, the Bank) formulates the on-site examination policy every
More informationLIFE INSURANCE RATING METHODOLOGY CREDIT RATING AGENCY OF
LIFE INSURANCE RATING METHODOLOGY CREDIT RATING AGENCY OF BANGLADESH LIMITED 1 CRAB S RATING PROCESS An independent and professional approach of the CRAB is designed to ensure reliable, consistent and
More informationProtective Reports First Quarter of 2011 Results and Announces Completion of Coinsurance Agreement
Protective Life Corporation Post Office Box 2606 Birmingham, AL 35202 205-268-1000 FOR IMMEDIATE RELEASE Protective Reports First Quarter of 2011 Results and Announces Completion of Coinsurance Agreement
More informationSAVINGS PRODUCTS AND THE LIFE INSURANCE INDUSTRY IN CANADA
SAVINGS PRODUCTS AND THE LIFE INSURANCE INDUSTRY IN CANADA Carl Hiralal 25 November 2004 1 Topics OSFI s Role Canadian Industry Insurance Products in Canada Insurance versus Savings Segregated Funds Universal
More informationProposed Insurance Act Amendments Life Insurance
Risk Based Capital for Risk Based Capital for Minimum paid-up share capital increased Class of Business Long-term business Long-term and general insurance business Industrial life business Current Requirement
More informationBOND ALERT. What Investors Should Know. July 2013 WWW.LONGVIEWCPTL.COM 2 MILL ROAD, SUITE 105
BOND ALERT July 2013 What Investors Should Know This special report will help you understand the current environment for bonds and discuss how that environment may change with rising interest rates. We
More informationMorgan Stanley Reports First Quarter 2016:
Media Relations: Michele Davis 212-761-9621 Investor Relations: Kathleen McCabe 212-761-4469 Morgan Stanley Reports First Quarter 2016: Net Revenues of $7.8 Billion and Earnings per Diluted Share of $0.55
More informationFinancial Results of the Daiwa Bank (Non-Consolidated)
Our Stockholders To Our Stockholders The Daiwa Bank, Limited Annual Report 2000 The Japanese financial services industry is reaching the final stages of its Big Bang as the implementation of limitations
More informationHolistic Company Report
Holistic Company Report Prestige International 4290 TSE First Section Update Report March 7, 2014 The Stock Research Center (General Incorporated Association) Copyright 2012 The Stock Research Center.
More informationForward Looking Statements 2. Condensed Consolidated Financial Statements
Mutual of Omaha Insurance Company and Subsidiaries Executive Summary and Analysis of Financial Condition as of March 31, 2016 and December 31, 2015 and Results of Operations for the Three Months Ended
More informationSession 9b L&H Insurance in a Low Interest Rate Environment. Christian Liechti
Session 9b L&H Insurance in a Low Interest Rate Environment Christian Liechti L&H Insurance in a Low Interest Rate Environment SOA Annual Symposium 24-25 June 2013 Macau, China Christian Liechti Swiss
More informationRating Criteria for Finance Companies
The broad analytical framework used by CRISIL to rate finance companies is the same as that used for banks and financial institutions. In addition, CRISIL also addresses certain issues that are specific
More informationNews from The Chubb Corporation
News from The Chubb Corporation The Chubb Corporation 15 Mountain View Road P.O. Box 1615 Warren, New Jersey 07061-1615 Telephone: 908-903-2000 Chubb Reports Fourth Quarter Net Income per Share of $2.35;
More informationProduct Development and Control of Pricing Risk
FALIA Invitational Seminar in Japan Risk Management Course Product Development and Control of Pricing Risk November 13, 2014 Yuho Murate Senior Asst. Manager Financial Planning and Actuarial Dept. The
More informationLIFE INSURANCE. and INVESTMENT
INVESTMENT SAVINGS & INSURANCE ASSOCIATION OF NZ INC GLOSSARY OF LIFE INSURANCE and INVESTMENT TERMS 2 Accident Benefit A benefit payable should death occur as the result of an accident. It may be a stand-alone
More informationSirius International Group Outlook Revised To Stable On Plans To Retain Its Strategy Post Acquisition; Ratings Affirmed
Research Update: Sirius International Group Outlook Revised To Stable On Plans To Retain Its Strategy Post Acquisition; Ratings Affirmed Primary Credit Analyst: Anvar Gabidullin, CFA, London (44) 20-7176-7047;
More informationEIOPA Risk Dashboard March 2015 Q4 2014 data PUBLIC. EIOPA-FS-15/209 Frankfurt, 20th March 2015
EIOPA Risk Dashboard March 2015 Q4 2014 data PUBLIC EIOPA-FS-15/209 Frankfurt, 20th March 2015 Summary The release of this EIOPA Risk Dashboard is based on 2014- Q4 indicators submitted on a best effort
More informationDisclosure of European Embedded Value (summary) as of March 31, 2012
May 25, 2012 SUMITOMO LIFE INSURANCE COMPANY Disclosure of European Embedded Value (summary) as of 2012 This is the summarized translation of the European Embedded Value ( EEV ) of Sumitomo Life Insurance
More informationResearch Update: DNB Bank ASA Ratings Affirmed At 'A+/A-1' On Bank Criteria Change; Outlook Stable. Table Of Contents
December 1, 2011 Research Update: DNB Bank ASA Ratings Affirmed At 'A+/A-1' On Bank Criteria Change; Outlook Stable Primary Credit Analyst: Alexander Ekbom, Stockholm (46) 8-440-59 11;alexander_ekbom@standardandpoors.com
More informationT. Rowe Price International Stock Portfolio
T. Rowe Price International Stock Portfolio Supplement to Summary Prospectus Dated May 1, 2014 The portfolio manager table under Management is supplemented as follows: Effective April 1, 2015, Richard
More informationThe Awa Bank, Ltd. Consolidated Financial Statements. The Awa Bank, Ltd. and its Consolidated Subsidiaries. Years ended March 31, 2011 and 2012
The Awa Bank, Ltd. Consolidated Financial Statements Years ended March 31, 2011 and 2012 Consolidated Balance Sheets (Note 1) 2011 2012 2012 Assets Cash and due from banks (Notes 3 and 4) \ 230,831 \
More informationBelgium-Based Insurance Group Ageas Upgraded To 'A' On Strengthened Financial Risk Profile; Outlook Stable
Research Update: Belgium-Based Insurance Group Ageas Upgraded To 'A' On Strengthened Financial Risk Profile; Primary Credit Analyst: Merryleas J Rousseau, Paris (33) 1-4420-6729; merryleas.rousseau@standardandpoors.com
More informationA. M. Best Company & The Rating Process
A. M. Best Company & The Rating Process Raymond J. Thomson, ARe, ARM Senior Financial Analyst, Property/Casualty Ratings Oldwick NJ Disclaimer AM Best Company (AMB) and/or its licensors and affiliates.
More informationFirst Half 2014 Taiwan Life Insurance Market Overview
First Half 2014 Taiwan Life Insurance Market Overview I. Life Insurance Industry Business and Financial Overview A. Business Statistical Overview The life insurance industry in Taiwan delivered NTD1,340.5
More informationNews from The Chubb Corporation
News from The Chubb Corporation The Chubb Corporation 15 Mountain View Road P.O. Box 1615 Warren, New Jersey 07061-1615 Telephone: 908-903-2000 FOR IMMEDIATE RELEASE Chubb Reports Second Quarter Net Income
More informationResearch Update: Danish Mortgage Bank DLR Kredit A/S Assigned 'BBB+/A-2' Ratings. Table Of Contents
May 31, 2012 Research Update: Danish Mortgage Bank DLR Kredit A/S Assigned 'BBB+/A-2' Ratings Primary Credit Analyst: Per Tornqvist, Stockholm (46) 8-440-5904;per_tornqvist@standardandpoors.com Secondary
More information