Tokio Marine and Nichido Fire China maintains stable outlook

It is expected to pursue opportunities tied to Japanese-affiliated industries in China.

The Tokio Marine and Nichido Fire Insurance Company (China) Limited (TMNCH) will likely hold a steady performance and receive ongoing support form its parent company amidst unstable market conditions, AM Best said.

TMNCH’s outlook is anchored in AM Best’s assessment of its very strong balance sheet, supported by robust capitalisation, low underwriting leverage, and a conservative investment strategy. 

The company’s capital and surplus remain modest but stable, underpinned by partial profit retention and a solvency buffer comfortably above regulatory requirements.

Despite a slowdown in 2024 driven by weaker business activity from Japanese entities in China and more cautious underwriting, the insurer maintained profitability. 

Its five-year average operating ratio stands at 88.9%, with a return-on-equity of 11.6%.

Improved loss ratios in 2024 further enhanced operating performance, allowing TMNCH to sustain double-digit ROE.

Gross premiums written reached RMB 976 million in 2024, representing less than 1% of market share. 

Whilst TMNCH remains a small player in China's non-life insurance sector, its outlook benefits from continued strategic alignment with parent company Tokio Marine & Nichido Fire Insurance Co., Ltd. 

The company also maintains preferential access to Japanese corporate clients operating in China, which remains a focus area for growth.

Looking ahead, TMNCH is expected to pursue opportunities tied to Japanese-affiliated industries in China, whilst maintaining a cautious risk approach and stable profitability levels.