It has good access to equity and debt capital markets when needed, the report said.
Tokio Marine Holdings (TMH) remains exposed to equity risks and underwriting risks from its overseas expansion but should have enough capital to absorb losses, said AM Best.
The Japan-headquartered insurance company benefits from strong financial flexibility and good access to equity and debt capital markets when needed, the credit rating agency said in a report on September 2025.
“While the group remains exposed to equity risk and growing underwriting risks from overseas expansion, it retains substantial capital to absorb potential volatility,” AM Best said.
TMH’s balance sheet strength is assessed as “strongest” by AM Best. The company also reportedly has a strong operating performance, a very favourable business profile, and a very strong enterprise risk management, said AM Best.
TMH notably accelerated its strategic equity disposal programme, targeting full disposal by fiscal year 2029, which should reduce its overall equity risk exposure materially over the medium term, the report said.
Its international operations’ profitability is improving, and domestic underwriting is resilient, AM Best said.
“TMH’s overseas business performance continued favourable performance, led by strong profit growth in North America,” AM Best said.