AM Best Withdraws Credit Ratings of The Dai-ichi Life Insurance Company, Limited

AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of The Dai-ichi Life Insurance Company, Limited (DL) (Japan), the wholly owned operating subsidiary of Dai-ichi Life Holdings, Inc. (DLH). The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect DLH’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.

DLH is the ultimate parent for the entire Dai-ichi organisation. AM Best views DL as being integral to the group, given its financial, operational and strategic importance to the overall organisation. Accordingly, DL’s ratings were based upon the assessment of credit fundamentals of the DLH organisation, which were extended specifically to DL.

DLH’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which was assessed at the very strong level. The group’s total reported capital declined by 10% year-over-year to JPY 3.5 trillion as of 31 March 2025, primarily driven by lower net unrealised gains on securities. The group’s economic solvency ratio, as calculated by its internal capital model, remained stable at above 200%, despite a volatile capital market environment in recent years. The group’s financial flexibility remains strong, supported by its access to equity and debt markets as a listed insurance group in Japan, while its financial leverage remains well managed under the group’s internal policy. In addition, the group has prudent asset-liability management practices in place to mitigate potential asset-liability mismatch risk, supported by effective asset allocation and reinsurance strategies.

DLH’s operating performance remained strong and resilient at fiscal-year end 31 March 2025, achieving consolidated premium income of JPY 68 trillion and an exceptional fundamental profit of JPY 639 billion. The group’s annualised premiums of new business also grew by 9%, driven by DL’s successful product launches and that strong overseas performance at Protective Life Corporation and TAL Life Limited.

DLH remains one of the largest private life insurance groups in Japan. In the domestic market, the group maintains a well-diversified distribution network through different brands (i.e. DL, The Dai-ichi Frontier Life Insurance Co., Ltd., and The Neo First Life Insurance Company, Limited), leveraging its extensive sales representative network, strong presence in bancassurance, and an expanding direct sales channel to meet customer needs across different segments. The group also demonstrates a level of geographical diversification, with its overseas insurance business contributing approximately 36% of the group’s in-force annualised premium and 26% of its adjusted net profit in fiscal year 2024. To diversify its business further and enhance capital efficiency, DLH has continued to expand its business footprint in non-insurance business and overseas insurance business in recent years through strategic acquisitions.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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