HONG KONG, Oct 18 (Bernama-BUSINESS WIRE)– The recent mega-typhoons in Japan are unlikely to affect the financial stability of the country’s three major non-life insurers due to their appropriate catastrophe risk management and strong capitalization levels, according to a new AM Best commentary.
In a new Best’s Commentary, titled, “Typhoons Faxai and Hagibis Unlikely to Impact Japanese Insurers’ Capitalization,” AM Best states that net of reinsurance, the total catastrophe loss impact of Typhoon Faxai on the three mega insurance groups —MS&AD Insurance Groups Holdings, Inc. (MS&AD), Sompo Japan Nipponkoa Insurance Inc. (SJNK) and Tokio Marine & Nichido Fire Insurance Co., Ltd.’s (TMNF) — is unlikely to exceed JPY 200 billion. Additionally, this estimate is before the release of catastrophe loss reserves. As a result, the net loss is unlikely to place significant negative pressure on the solvency and capitalization of these groups.
