Fitch, Japanese non life insurers placed on negative watch

The rating agency Fitch has placed Japanese non life insurers on negative watch, a move accounted for by the large share of State bonds held in their portfolios. Fitch had already placed the Japanese government on negative watch.

The sector’s outlooks remain nevertheless stable thanks to the improved underwriting results and to the decent capitalization of non life insurance companies.

The combined ratio for non life insurers improved in the first quarter of the current fiscal year ending in March 2015, thanks to higher motor premium rates and to the lack of large losses. The three major non life insurers are Tokio Marine Group, MS&AD Insurance Group and Sompo Group.