Toa Re’s improved underwriting to boost financials overtime

Its FY 2023 net profit saw $110m.

Toa Reinsurance has shown the strongest balance sheet strength, as assessed by AM Best, along with adequate operating performance, a favourable business profile, and appropriate enterprise risk management.

Toa Re’s balance sheet strength is underpinned by consolidated risk-adjusted capitalisation at the strongest level, as measured by AM Best’s Capital Adequacy Ratio (BCAR). 

The company also benefits from a high quality of capital. However, the elevated reserve position due to TRA’s reserve strengthening initiative has been a key factor offsetting Toa Re’s balance sheet strength.

Toa Re's financial performance has improved since fiscal year 2022. The company reported a net profit of $110m (JPY15.6b) in fiscal year 2023, driven by higher investment returns. 

Additionally, its underwriting performance saw improvements due to successful non-life portfolio rebalancing and the absence of COVID-19-related losses, which had negatively impacted the life and health underwriting results in 2022. 

Despite these gains, the continued reserve strengthening at TRA, in response to social inflation trends in North America, remains a challenge. 

AM Best expects that TRA’s mitigation plan will enhance profitability over time, despite ongoing pressure on underwriting performance.

($1.00 = JPY146.66)