JCR retains Dai-Ichi Mutual Life Insurance's A+, J-1+ ratings

JCR confirmed on Monday the A+ rating with a "stable" outlook on the ability to pay insurance claims and senior debts of Japanese firm Dai-Ichi Mutual Life Insurance Co.

The agency also upheld the J-1+ rating on the company's commercial paper (CP) programme.

Dai-Ichi Life Insurance is the second largest life insurance company in terms of policy amount in force.

Sales through branches of banks and securities companies at its subsidiary, Dai-Ichi Frontier Life Insurance, have grown sharply in the fiscal year ended 31 March 2010.

This increase has contributed largely to boosting the group's annualised new business premium and premium.

Although profits from the core business have been stable relatively, such amounts have been declining slightly.

JCR considers that the company can ensure a certain level of earnings despite an expected decline in the policy amount in force

because of the solid mortality rate margin and reduced negative interest rate spread owing to the lowered assumed interest rate as a result of provision of additional policy reserve.

Its capital adequacy has improved thanks to cutback in the risk assets and its measures to reduce interest rate risk and there is no problem with this level.