...Blue Cross (Asia-Pacific) Insurance Ltd. is a strategically important subsidiary of AIA Group Ltd., in our view. The insurer plays an important role in AIA's strategy to expand in Hong Kong's health insurance market. It focuses on attracting insurance business from young, value-driven retail customers, small and midsize enterprises (SME), and mid-to-large corporate markets. This complements AIA Hong Kong in providing a holistic insurance solutions to its clients. We believe AIA Group (A+/Positive/A-1; core operating entities rated ##-/Positive/--) 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 group and rate it three notches above our assessment of its stand-alone credit profile (SACP) at '###+'. Blue Cross will likely maintain healthy capitalization supportive of business growth. We base our view on the insurer's interim growth targets and gradual reduction of net losses. The insurer's...
