Fitch lifts Asahi Mutual view to positive

Fitch Ratings said it revised the outlook on Asahi Mutual Life Insurance Co. to positive from stable and affirmed its insurer financial strength rating at BBB- (good) and long-term issuer default rating at BB+.

The agency also said it affirmed the company's dollar-denominated subordinated bonds at BB.

The outlook revision reflects the improvement in Asahi Life's capitalization and leverage, as well as its satisfactory financial performance and earnings backed by steady growth in the profitable health insurance sector, Fitch said.

These factors mitigate Asahi Life's interest rate risk and high sovereign investment concentration risk within its investment portfolio, the agency said.

Asahi Life's moderate business profile is based on it partly being a traditional life insurer in the Japanese market, Fitch said.

The agency said it ranks Asahi Life's business profile as moderate compared with all of the other Japanese insurance companies.

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