HONG KONG, May 30 -- (Bernama-BUSINESS WIRE) -- A.M. Best has
downgraded the financial strength rating to A- (Excellent) from A
(Excellent) and the issuer credit ratings to “a-” from “a” of DTRIC
Insurance Company, Limited (DTRIC) and its reinsured affiliate, DTRIC
Insurance Underwriters, Limited. The outlook for each rating has been
revised to stable from negative. Both companies are domiciled in
Honolulu, Hawaii.
The rating downgrades reflect the continued deterioration in the company’s risk-adjusted capitalization over the past three years, as measured by Best’s Capital Adequacy Ratio, and the historical volatility in its operating performance. The ratings reflect the implicit and explicit support provided by its major shareholder, Aioi Nissay Dowa Insurance Company Limited (ADI), which owns approximately 75% of DTRIC’s shares. ADI provides a wide range of support by developing DTRIC’s auto insurance business through Toyota dealers, participating in DTRIC’s reinsurance arrangements, helping the company enhance its enterprise risk management scheme and providing a financial guarantee.
http://mrem.bernama.com/viewsm.php?idm=26905
The rating downgrades reflect the continued deterioration in the company’s risk-adjusted capitalization over the past three years, as measured by Best’s Capital Adequacy Ratio, and the historical volatility in its operating performance. The ratings reflect the implicit and explicit support provided by its major shareholder, Aioi Nissay Dowa Insurance Company Limited (ADI), which owns approximately 75% of DTRIC’s shares. ADI provides a wide range of support by developing DTRIC’s auto insurance business through Toyota dealers, participating in DTRIC’s reinsurance arrangements, helping the company enhance its enterprise risk management scheme and providing a financial guarantee.
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