Japan’s Toa Re sees net income rise on underwriting improvement

It saw increased investment return from higher interest and dividend incomes.

Toa Reinsurance Company Limited (Japan) showed underwriting performance improvement whilst its operating performance is adequate, according to AM Best.

Japan’s sole commercial domestic reinsurer saw its net income rise to JPY28.5b in FY2024, from JPY15.6b in FY2023, driven by its strengthened underwriting performance on reduced natural catastrophe losses.

AM Best also noted Toa Re for having a disciplined underwriting approach and for its multi-year portfolio repositioning efforts, and its increased investment return from higher interest and dividend incomes.

Whilst its American subsidiary, Toa Reinsurance Company of America (TRA), continues to face pressure from ongoing reserve strengthening, its underwriting performance showed improvement with a lower combined ratio and narrowing underwriting loss in FY2024, AM Best said.

“Whilst the elevated reserve position at TRA continues to present some uncertainty to the group’s balance sheet strength due to ongoing social and economic inflation pressures, the impact has moderated compared with previous years,” AM Best said.

Toa Re’s consolidated risk-adjusted capitalisation is judged to be “at the strongest level,” the credit rating agency said on 29 August 2025, where it affirmed Toa Re’s long-term issuer credit rating of a+ or excellent.

Approximately 33% of the group’s total net premium written is derived from its life reinsurance portfolio, enhancing overall portfolio stability through low correlation with catastrophe-exposed non-life business lines.