Japanese P&C outlook remains stable
Saturday, 04 07 2018, Category: Insurance and Reinsurance, Country: Asia
Moody’s considers the outlook for the Japanese property and casualty (P&C) industry to be stable, citing strong domestic profitability and capitalisation, but predicts that further improvement is unlikely.
Japan’s P&C sector has maintained a stable outlook since July 2012, largely owing to the profitability of its auto insurance, which constitutes its largest business segment, and to stable investment profit that is underpinned by domestic stock dividends.
However, P&C re/insurers are unlikely to see their auto profitability improve due to reductions in premium rates, although these reductions will remain gradual due to the industry’s strong pricing power.