JCR maintains Asahi Fire & Marine Insurance's BBB+ debt rating

2 September 2010 - JCR upheld on Thursday its BBB+ rating with a "stable" outlook on the senior debts of Japanese company Asahi Fire & Marine Insurance Co Ltd.

Although Asahi Fire & Marine Insurance continues to generate results to a certain degree in its channel strategy, its net premiums written have been lowering.

Its profitability remains low despite its efforts to stave off worsening of its expense ratio by way of large cutback in expenses.

It might take some time to improve its profitability in a situation where its net premiums written are not likely to increase.

Although it retains a certain level of capital adequacy, that is easily affected by changes in the stock price.

JCR considers that accumulation of its retained earnings will be slow, taking into consideration its earnings power.

JCR will watch whether or not it can increase its retained earnings.