Fitch: Performance Improvement at Japanese Non-life Insurers to Slow

Mon Jun 2, 2014 8:01pm EDT

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(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Japanese Non-Life Insurance Dashboard 1H14 here HONG KONG/TOKYO, June 02 (Fitch) Fitch Ratings says in a new report that Japanese non-life insurers' loss ratios (earned to incurred basis), excluding natural disasters, for the financial year ended 31 March 2014 (FYE14) improved due to the combination of strong premium growth and lower claims in their mainstay automobile business lines. However, slower premium growth, the negative impact of a consumption tax hike in April and rising repair costs are likely to slow improvements in the insurers' performances in FYE15, even though all five major non-life insurers have announced increases in premiums for the current financial year. Fitch also expects moderate recovery in non-life insurers' capital adequacy as they continue to reduce investment risks, provided there are no significant unexpected loss events. The average statutory solvency margin ratio of the non-life insurers improved in FYE14 from a year earlier, due largely to good financial market performance. The 'Japanese Non-life Insurance Dashboard 1H14' is available at or by clicking the link above. Contact: Akane Nishizaki Associate Director +852 2263 9942 Fitch (Hong Kong) Limited 2801, Tower Two, Lippo Centre 89 Queensway, Hong Kong Teruki Morinaga Director +81 3 3288 2781 Media Relations: Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: Additional information is available on ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.