Meiji Life Insurance Co. and Nippon Fire & Marine Insurance Co. announced Monday that they will jointly develop a regional sales network and market nursing care insurance.

Under the tieup, the two insurers will jointly package life and property insurance that will be sold at an estimated 20 regional banks.

Meiji Life will also sell its nursing care-related products through Nippon Fire's 34,550 sales branches.

Meiji Life is close to the Mitsubishi Tokyo Financial Group, while Nippon Fire, which will merge with Koa Fire & Marine Insurance Co. to form Nipponkoa Insurance Co. in April, has ties with the UFJ Group.

Although Meiji Life and Nippon Fire will consider other areas where they can cooperate in the future, company presidents denied the possibility of a comprehensive tieup that would cross banking group lines.

"We have kept one foot firmly planted in the Mitsubishi Group, while developing partnerships in different fields with the best partners," Meiji Life President Ryotaro Kaneko said.

"This is just one part (of our strategy)," he added.

Tokio H.K. rated down

HONG KONG (Kyodo) Standard & Poor's said Monday it has downgraded its insurer financial strength and counterparty credit ratings on the Hong Kong unit of Tokio Marine & Fire Insurance Co. to "AA+" from "AAA."

The rating cut for Tokio Marine & Fire Insurance Co. (Hong Kong) follows the lowering of its parent and guarantor, the U.S.-based credit-rating agency said.

"Aside from the recent lowering of Japan's sovereign rating, the downgrade on the parent entity reflects the group's modest underwriting performance, particularly relative to its major industry peers, as well as the uncertain and competitive environment surrounding the nonlife (insurance) industry in Japan," the agency said.

The outlook on the rating for the Japanese parent remains negative, S&P said.

The Hong Kong unit is a wholly owned subsidiary of Tokio Marine, a leading nonlife insurance company.