A.M. Best Comments on Ratings of Sompo Japan Nipponkoa Insurance Inc. Following Sompo Japan Nipponkoa’s Announced Investment

A.M. Best has commented that the financial strength rating of A+ (Superior) and the issuer credit rating of “aa-” of Sompo Japan Nipponkoa Insurance Inc. (Sompo Japan Nipponkoa) are unchanged following the announcement that it plans to invest in SCOR SE (SCOR) (France).

Sompo Japan Nipponkoa Holdings, Inc (SJNK) (Japan) announced on March 6, 2015 that Sompo Japan Nipponkoa, its main operating subsidiary, will acquire a 7.8% stake in SCOR and intends to further increase that stake to 15%.

Overall investment risk to equities is expected to remain within an acceptable level, as the company has reduced its exposure to the domestic equity market over the years. More recently, the company has made an effort to expand its earnings profile and diversify the risk profile both in investment and underwriting.

Sompo Japan Nipponkoa is a wholly owned subsidiary of SJNK, which is one of the major non-life insurance holding companies in Japan. SJNK Holdings was established as a joint holding company following the merger of Sompo Japan and NIPPONKOA Insurance Co., Ltd. (NIPPONKOA) in 2010.

The methodology used in determining these interactive ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• Catastrophe Analysis in A.M. Best Ratings

• Equity Credit for Hybrid Securities

• Rating Members of Insurance Groups

• Risk Management and the Rating Process for Insurance Companies

• Understanding Universal BCAR

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

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