Tokio Millennium Re Ltd. (TMR) has been affirmed the financial strength rating of A+ (superior) and issuer credit rating of "aa-" by AM Best Co.

The outlook for both ratings is stable.

TMR is a wholly owned subsidiary of Tokio Marine and Nichido Fire Insurance Co. Ltd. (TMNF), which is the main trading subsidiary of Tokio Marine Holdings Inc.

TMR serves as one of Tokio Marine Group's key drivers of overseas expansion designed to geographically diversify the group's aggregation of natural perils. TMR uses the global recognition and balance sheet strength of its parent for competitive advantage.

The ratings reflect TMR's excellent financial strength, overall favourable business performance and management profile. The excellent financial strength takes into consideration the parental support provided by TMNF and advanced risk management practice.

TMR could experience unfavorable short run uncertainty due to the highly volatile nature of catastrophe risks and the cyclic pricing market in the reinsurance industry. To reduce this volatility and achieve a more stable profile, TMR continues to diversify into the workers' compensation catastrophe and durable crops/hail insurance. In addition, TMR continues to structure risk transfer solutions on behalf of institutional investors seeking to diversify their investment opportunities by participating in the assumption of reinsurance.