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AM Best Affirms Credit Ratings to Tokio Marine Canada Ltd.
[March 30, 2023]

AM Best Affirms Credit Ratings to Tokio Marine Canada Ltd.

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) of Tokio Marine Canada Ltd. (TMC) (Toronto, ON). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect TMC's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The very strong balance sheet assessment reflects TMC's strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), with a capitalization of CAD 75 million provided by Tokio Marine & Nichido Fire Insurance Co., Ltd. in 2022, as well as ongoing support, as needed. Risk-adjusted capitalization is expected to remain in the strongest category for the next several years, with additional positive rating factors that include financial flexibility, high-quality assets, a conservative investment portfolio and reinsurance programs that are placed with highly rated reinsurers. Conversely, AM Best views the execution risks associated with startup companies as a negative factor.

AM Best assesses the company's operating performance as adequate based on TMC's projection. AM Best views the company's business profile as limited given that TMC is a startup entity. TMC's ERM capabilities benefit from the overall framework developed at the ultimate parent's level.

This pres 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 specializing 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

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