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Member, Beacon International Group, Ltd.
TOKYO—Moody’s Investors Service Inc. has changed its outlook on Japan’s three largest property/casualty insurers to negative from stable, citing the March 11 disaster as the reason.
Moody’s said Wednesday the change reflects the rating agency’s view that losses from the earthquake and tsunami will pressure the profitability and capitalization of Tokio Marine & Nichido Fire Insurance Co. Ltd., rated Aa2; Mitsui Sumitomo Insurance Co. Ltd., rated Aa3; and Sompo Japan Insurance Inc., rated Aa3.
Moody’s, however, affirmed the rating of all three Tokyo-based insurers.
Moody’s said it likely will take many months to ascertain the true extent of insured losses from the earthquake and tsunami. In addition, the rating agency said, the loss comes at a time when the Japanese property/casualty market is already suffering from low-to-negative growth and modest profitability.
Reinsurance costs for Japanese insurers also are likely to increase, Moody’s noted, and domestic insurers may find their investment portfolios exposed to volatility in the Japanese stock market, Moody’s said.
OAKLAND, Calif.—Total insured losses from last week’s earthquake and tsunami in eastern Japan will range between $12 billion and $25 billion, catastrophe modeler EQECAT Inc. said Wednesday.