Standard & Poor's said Friday it has revised downward the outlooks in its counter-party credit ratings on five Japanese life insurance companies following the recent release of business results for the April-September first half of fiscal 2000.
S&P revised the outlooks to "stable" from "positive" on Fukoku Mutual Life Insurance Co., Nippon Life Insurance Co. and Yasuda Mutual Life Insurance Co.
Outlooks were revised from "stable" to "negative" on Meiji Life Insurance Co. and to "developing" from "positive" on Asahi Mutual Life Insurance Co.
The revisions on Fukoku, Nippon, Yasuda and Meiji reflect S&P's increased concern about the future of the Japanese life insurance industry as it faces a decline in business in force and investment income as well as a relatively high surrender level, the major U.S. credit rating agency said.
The "developing" outlook on Asahi reflects the possibility of a rating adjustment if the firm's operating performance declines further in face of the greater-than-average decline in total business volume and premiums in the fiscal first half in relation to its major peers.
However, Asahi's rating may be adjusted upward if its recently announced tieups with Tokio Marine & Fire Insurance Co. and Nichido Fire & Marine Insurance Co. proceed successfully, S&P added.