MOV in DER-356 is rated too low voltage?

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The MOV in DER-356 is rated to break down at 354V.....the DER-356 circuit is to 265VAC ..this is 375V peak..that means the MOV will be breaking over due to the mains......surely this is not right....I thought the MOV break over voltage had to be above the mains peak voltage?...(but below the DC bus capacitor max voltage)?

The nominal input voltage is in the range of 100VAC to 240VAC. Thus, using a 250V MOV won't be a problem since the input voltage does not settle at 265VAC.

 

However, if you can use a 275VAC MOV and just re-verify the surge performance of your design.