MUMBAI (Thomson Financial) - Fitch Ratings said it has affirmed Japan's Sumitomo Life Insurance Co's (Sumitomo Life) insurer financial strength (IFS) rating at 'A' with stable outlook.
The rating reflects the company's strong business position, strong growth in sales of third-sector products and variable annuities as well as the continuous improvement in the company's capital position and core operating profitability, Fitch said.
The ratings agency said these factors are offset by the ongoing negative spread burden and relatively high level of leverage of the company compared with its peers.
Fitch said the company has an advantage over other Japanese life insurers due to its relatively early entry into these new areas and well established distribution channels.
Sumitomo Life's statutory solvency margin ratio improved to 1068.6 pct at end of March 2007 from 949.7 pct at end of March 2006, boosted by the accumulated retained surplus, the ratings agency said.
Fitch said it expects Sumitomo Life's capital position to continue to strengthen for the foreseeable future, taking the company's growth of sales and profitability into account. TFN.newsdesk@thomson.com vsh/man COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2007 AFX News
