10 Japanese insurers’ outlook raised to stableMay 3 2017 by InsuranceAsia News Staff
Japan’s improving economic outlook, which has lowered risks over the trajectory of public debt, has prompted Fitch Ratings to upgrade its outlook on 10 Japanese insurers from negative to stable.
Aside from the improving economic outlook, Fitch also cited external demand, which exceeded expectations, and the major revision of national accounts data in December 2016 as key ratings drivers.
The improved growth outlook and stronger consumption recovery suggests the economy could be more resilient to fiscal consolidation measures, Fitch said.
The 10 insurers are Dai-ichi Life, Daido Life, Fukoku Mutual Life, Meiji Yasuda Life, Mitsui Sumitomo, Nippon Life, Sompo Japan Nipponkoa, Sumitomo Life, Taiyo Life, and Tokio Marine & Nichido Fire Insurance.
Fitch, however, maintains its view that only Dai-ichi Life and Tokio Marine out of the 10 insurers under review have achieved the necessary international business diversification that counterbalances their heavy Japanese government debt holdings.
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