Sompo’s financial strength, risk management ratings improve

Standard & Poor’s Global Ratings has raised the financial strength ratings on Sompo International Holdings Ltd.'s core operating companies to “A+” from “A”, Sompo Holdings said in a statement Tuesday.

S&P also raised the assessment of the Sompo Holdings Group’s enterprise risk management to “Strong” from “Adequate with strong risk controls,” the statement said.

In raising the financial strength rating, S&P cited “SIH’s increased integration and strategic importance to Sompo Group” as the company leverages SIH’s operating platform “to enhance its product and geographic mix and expand its international presence,” the statement said.

S&P raised Sompo’s ERM assessment because it “views favorably the continued use of return on-risk metrics in evaluating various risk-taking initiatives, and the use of ERM analysis in making strategic decisions, such as product pricing and due diligence for mergers and acquisitions,” the statement said.

Sompo is continuously enhancing its ERM practices and further expanding its business through the establishment of a “truly integrated global platform” under SIH as the company endeavors to become one of the top 10 global insurers with respect to profit and return on equity, the statement said.