MassMutual Japan Ratings Affirmed At #A-# After Announcement Of Acquisition By Nippon Outlook Remains Stable

Stocks and Financial Services Press Releases Monday March 5, 2018 17:05
TOKYO--5 Mar--S&P Global Ratings

TOKYO (S&P Global Ratings) March 5, 2018--S&P Global Ratings today said it has affirmed its 'A-' insurer financial strength and long-term issuer credit ratings on Japan-based MassMutual Life Insurance Co. (MassMutual Japan). The outlook remains stable. At the same time, we have affirmed our 'BBB+' and 'BBB' ratings on the insurer's subordinated debt.

The rating affirmation follows Nippon Life Insurance Co.'s (A+/Stable/--) announcement on March 2, 2018 that it will acquire MassMutual Japan. We believe the Nippon Life group aims to tap into the business strengths of MassMutual Japan. These strengths include products targeting the high net-worth market, MassMutual Japan's product development expertise, its distribution channel of mainly major banks and brokerages, and its support network for them. In our opinion, these factors will complement Nippon Life's existing businesses and make MassMutual Japan a subsidiary of high strategic importance within the Nippon Life group. In addition, given the Nippon Life group's business strategy, we believe that it is highly likely to support MassMutual Japan if the insurer faces financial difficulties.

We expect to assess MassMutual Japan's status within the Nippon Life group as strategically important if the group completes the planned acquisition. Therefore, the credit quality of the Nippon Life group is likely to underpin our ratings on MassMutual Japan. Also, we will likely continue to derive our subordinated debt ratings on MassMutual Japan by notching down from our long-term issuer credit rating on the insurer, which takes into account the likelihood of extraordinary group support. We base this on our view that the Nippon Life group has a strong incentive to support MassMutual Japan's subordinated debt if necessary because it could affect the group's reputation.

The outlook is stable. We expect that our ratings on MassMutual Japan will stay stable for the next two years or so. We base this view on our expectation that our stand-alone credit profile (SACP; excluding the likelihood of extraordinary group support) for the insurer will remain stable and our assessment of the company's group status will remain unchanged.

We may consider upgrading MassMutual Japan if its SACP improves through, for example, improved financial leverage or strengthened capital adequacy. We may also consider an upgrade if the Nippon Life group adds explicit support for MassMutual Japan, or if we come to the view that the insurer's group status has surpassed our current assessment.

On the other hand, we may consider downgrading MassMutual Japan if the insurer's capital adequacy declines to a level that we deem as lower adequate due to weakened financial markets. We may also consider a downgrade if we determine that its group status has deteriorated.


Latest Press Release

mai welcomes real estate developer CMC on November 19

Market for Alternative Investment (mai) will list Chaoprayamahanakorn pcl, a leading real estate developer onNovember 19, under the ticker symbol "CMC". The company has a market capitalization at its initial public offering (IPO) of THB 3.00 billion...

KTC - Chilito Mexican Grill - Farm Factory provide members special privileges for payments made using QR Pay in the KTC Mobile app.

Mrs. Pranaya Nithananon, Vice President - Credit Card Business, "KTC" or Krungthai Card Public Company Limited, provides KTC VISA and KTC MasterCard credit card members who make payments through KTC QR Pay in the "KTC Mobile" app worth Bt. 300 or more...

Photo Release: KBank opens new flagship branch and THE WISDOM Lounge at ICONSIAM

Mr. Wirawat Panthawangkul (3rd from left), KBank Senior Executive Vice President, and Ms. Chadatip Chutrakul (4th from left), Director of ICONSIAM Co., Ltd., and Chief Executive Officer of Siam Piwat Co., Ltd., participated in the opening ceremony of...

Photo Release: CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

Tengku Dato' Sri Zafrul Aziz, Group CEO of CIMB Group (right), and Brad Garlinghouse, Ripple CEO (left) commemorating the strategic collaboration between CIMB Group and Ripple to power instant payments across ASEAN at the Singapore FinTech festival 2018...

CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

CIMB is one of the first banks to leverage blockchain technology to tap into region's USD120 billion remittance business CIMB Group ("CIMB" or "the Group") and Ripple have entered into a strategic collaboration to enable instant cross border payments...

Related Topics