Blue Cross (Asia-Pacific) Insurance Ltd.

We believe AIA Group (A+/Stable/A-1; core operating entities rated AA-/Stable/--) will support Blue Cross with capital and resources in a timely manner when needed. We view the insurer as a strategically important subsidiary of the AIA Group and rate it three notches higher than our assessment of its stand-alone credit profile (SACP) at 'bbb+'. The stable outlook on Blue Cross reflects our rating outlook on AIA and our view that Blue Cross will maintain its SACP and remain a strategically important subsidiary of AIA. We believe Blue Cross will maintain its satisfactory competitive position with healthy capital buffers over the next two years. In our view, the insurer's prospective capitalization should cushion stress in operating performance from expanding its health

...We view Blue Cross (Asia-Pacific) Insurance Ltd. as a strategically important subsidiary of AIA Group. Blue Cross plays an important role in AIA's strategy for growth in Hong Kong's health insurance market. The insurer focuses on attracting insurance business from young, value-driven retail customers, small and midsize enterprises (SME), and mid-to-large corporate markets. We see it striving to strengthen its integration with the group's Hong Kong operations. We believe AIA Group (A+/Stable/A-1; core operating entities rated ##-/Stable/--) will support Blue Cross with capital and resources in a timely manner when needed. We view the insurer as a strategically important subsidiary of the AIA Group and rate it three notches higher than our assessment of its stand-alone credit profile (SACP) at '###+'. Blue Cross' capitalization is likely to remain healthy and supportive of its business growth. We base our view of the insurer's strong capital position on its interim growth targets and gradual...

Full Report