S&P Affirms Tokio Marine Europe ‘AA-‘ Rating

November 11, 2004

Standard & Poor’s Rating Services announced that it has affirmed it’s “AA-” insurer financial strength rating on London-based Tokio Marine Europe Insurance Ltd. (TMEI), a wholly owned subsidiary of Tokio Marine & Nichido Fire Insurance Co. Ltd. (TMNFI; AA-/Stable), part of the Millea group. The outlook is stable.

“TMEI primarily provides insurance to Japanese-owned risks throughout Europe where a relationship exists between the insured’s Japanese parent and TMNFI, S&P noted. “However, for 2003, 15 percent of net premiums written was sourced from non-Japanese clients, and is forecast to rise to about 30 percent by 2005. TMEI also 100 percent reinsures a significant proportion of its gross premiums written to TMNFI through fronting arrangements, including its participation in Global Aerospace Underwriting Managers, the aviation insurance pool.”

“The rating on TMEI reflects the claims guarantee provided to the entity by TMNFI,” indicated S&P credit analyst Matthew Day. This explicit support agreement meets Standard & Poor’s guarantee criteria. S&P “expects TMNFI to ensure that claims made by TMEI policyholders are paid, and as a consequence, the ratings on TMEI will move in tandem with those on TMNFI,” Day added.

The stable outlook on TMEI reflects that on its guarantor, TMNFI.

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