Recommend Us | About Us | Back to

News | Financial Calculator | Home Financing | Archived News |


  Welcome to Bernama Banking & Finance Special Page     
Rising reinsurance costs, Japan’s non-life insurers need focus on profitability - AM Best
Last update: 23/05/2019

KUALA LUMPUR, May 23 (Bernama) -- Japan’s non-life insurers are facing pressure to rebuild catastrophe reserves amid rising reinsurance costs that follow a catastrophe loss-heavy year in 2018, according to an AM Best report.

The new Best’s Market Segment Report, ‘Japan Non-Life Insurers Focus on Profitability’, stated that because of the disasters, Japan’s non-life carriers released a sizeable portion of their catastrophe reserves.

The amount of catastrophe reserves released by Japan’s three non-life insurance giants in the third quarter of fiscal-year 2018 (October to December) totalled approximately USD3.07 billion, according to a statement. (1USD = RM 4.19)

These reserves represented a 13 per cent net reduction of the insurers’ overall catastrophe reserve balance. The vast majority of these reserve releases came from the fire and allied line, and as a result, catastrophe reserves for this line declined by nearly 40 per cent.

The report also stated that some insurers’ lower wind/flood catastrophe excess-of-loss layers were exhausted after typhoons Jebi and Trami in 2018. Insurers needed to pay the reinstatement premium for restoring the layer limit after the first loss event.

Some also needed to purchase back-up reinsurance cover after Typhoon Trami to reinforce their lower-layer protection and cover any additional losses from potential winter snowstorms.

AM Best views the capitalisation of Japan’s major non-life insurers as robust and resilient to underwriting or economic challenges. It expects Japan’s domestic insurance companies to remain focused on operating profitability over the medium term.

AM Best is a global rating agency and information provider with unique focus on the insurance industry.  For more information, visit




Islamic Banking institutions urged to provide training to strengthen SME sector
Govt sets up special committee on Islamic Finance

Bank Muamalat's Mohd Arfaizal emerges champion of BNM's elocution contest

LIAM committed to increasing life insurance penetration rate
Govt likely to revise life insurance penetration rate target

LIAM appoints new president for 2019/2020 term

100 Yen3.8624/8671
Source: Bank Negara Malaysia

Reduction in the overnight policy rate (OPR) by Bank Negara Malaysia would be good for consumer spending and investment;
Not sure
  Main | News | Insurance

© 2019 BERNAMA. All Rights Reserved. Disclaimer | Privacy Policy| Security Policy
This material may not be published, broadcast, rewritten or redistributed in any form except with the prior written permission of BERNAMA.
Best viewed in Firefox 8.0 & Internet Explorer 8.0 with 1024 x 768 resolution