Fitch assigns rating to Dai-ichi captive

Fitch Ratings has assigned Dai-ichi Life Reinsurance Bermuda an 'AA-' (Very Strong) Insurer Financial Strength (IFS) Rating. The outlook is stable.

Fitch said that the rating was driven by its expectation of support for Dai-ichi Life Re from its ultimate parent, Japan-based Dai-ichi Life Holdings, which wholly owns the company.

Fitch considers Dai-ichi Life Re a core captive business of the Dai-ichi Life group (core life insurance operating company: The Dai-ichi Life Insurance Company. The rating agency has therefore equalised Dai-ichi Life Re's IFS Rating with that of Dai-ichi Life.

The rzting agency added that Dai-ichi Life Re's mission and goals are tied to the Dai-ichi Life group's risk management and financing strategy. Dai-ichi Life Re is not considered a profit centre for the group. Its objective is to improve the Dai-ichi Life group's efficiency and support operational and financial optimisation efforts.

Dai-ichi Life Re, which is licensed as a class C reinsurer in Bermuda, does not underwrite any third-party reinsurance business outside the group. All of its reinsurance businesses are originated from operating entities within the Dai-ichi Life group and follow the same business standards as the group.