OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa” (Superior) of First Insurance Company of Hawaii, Ltd. (FICOH) (Honolulu, HI) and its reinsured subsidiaries, collectively referred to as First of Hawaii Group. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and ratings).
The ratings reflect First of Hawaii Group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and very strong enterprise risk management (ERM).
The group has posted positive net income in nine out of the past 10 years, which have been aided by solid levels of investment income. While results in 2021 were challenged in large part by adverse reserve development, the company reported a material improvement in operating performance through first nine months of 2022. The group’s balance sheet strength assessment level is supported by its retained earnings, conservative investment portfolio and favorable levels of liquidity. FICOH has a deep-rooted domestic market presence as one of the leading insurance companies in Hawaii. The ratings also consider the operational, financial and ERM support provided by the ultimate parent, Tokio Marine Holdings, Inc., and its lead insurance operating company, Tokio Marine & Nichido Fire Insurance Co., Ltd. These factors include day-to-day operational synergies across its U.S.-based subsidiaries, reinsurance support and economic capital modeling that is superior to peer companies.
The FSR of A+ (Superior) and the Long-Term ICRs of “aa” (Superior) have been affirmed with stable outlooks for First Insurance Company of Hawaii, Ltd. and its following property/casualty subsidiaries:
- First Fire and Casualty Insurance of Hawaii, Inc.
- First Indemnity Insurance of Hawaii, Inc.
- First Security Insurance of Hawaii, Inc.
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