Rating agency Moody's has put six Japanese P&C insurance and reinsurance companies on review for possible downgrade.
The review has been prompted by the potential financial impact of the declining manufacturing output in Japan and the deflationary pressures hitting the region.
The six companies are: Tokio Marine, Nichido Fire, Mitsui Sumitomo Insurance, Nipponkoa Insurance, Nissay Dowa General Insurance and Toa Re.
Moody's said the growing risks associated with the erosion of capital positions of these companies and the challenges all the companies face with ongoing deregulations and merger integrations could affect ratings further.
Pressure will build on P&C insurers on the asset side of the balance sheet, the agency said.
