HONG KONG (Standard&Poor's) March 13, 2007--Standard&Poor's Ratings Services said today that its ratings on Taiwan-based Cathay Life Insurance Co. Ltd. (Cathay Life; A/Stable/--) would not be affected by the company's recent additional purchase of shares in Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC). The higher concentration risk appears manageable. Moreover, Cathay Life's capitalization remains at a level commensurate with the ratings. Cathay Life purchased TSMC shares on March 12, 2007 to improve its investment yield. After the purchase and as of the same date, Standard&Poor's estimates that Cathay Life's total TSMC holding accounted for about 2% of its total investments or 26% of its shareholders' funds.
