Bulletin: Chung Kuo Insurance's Capital Restructuring To Support Its Capital Strength

TAIPEI (S&P Global Ratings) April 26, 2024--Chung Kuo Insurance Co. Ltd.'s capital restructuring plan is likely to help the Taiwan-based insurer sustain very strong capital and earnings, with potential group support. Chung Kuo Insurance has announced that it will conduct a paid-in capital write-off of new Taiwan dollar (NT$) 5.33 billion to make up the accumulated losses from pandemic insurance policies. Meanwhile, the insurer's parent Mega Financial Holding Co. Ltd. will participate in the subsidiary's new capital raising of NT$4.5 billion. The fundraising should be sufficient to maintain Chung Kuo Insurance's excellent capitalization and absorb potential reinsurance recovery losses over the next two years. Mega Financial has made up to NT$8 billion capital injections in 2022 and 2023. The capital

...April 26, 2024 TAIPEI (S&P Global Ratings) April 26, 2024--Chung Kuo Insurance Co. Ltd.'s capital restructuring plan is likely to help the Taiwan-based insurer sustain very strong capital and earnings, with potential group support. Chung Kuo Insurance has announced that it will conduct a paid-in capital write-off of new Taiwan dollar (NT$) 5.33 billion to make up the accumulated losses from pandemic insurance policies. Meanwhile, the insurer's parent Mega Financial Holding Co. Ltd. will participate in the subsidiary's new capital raising of NT$4.5 billion. The fundraising should be sufficient to maintain Chung Kuo Insurance's excellent capitalization and absorb potential reinsurance recovery losses over the next two years. Mega Financial has made up to NT$8 billion capital injections in 2022 and 2023. The capital injections, which underpin our view that the parent group is strongly committed to financially supporting Chung Kuo Insurance, have no impact on our ratings or outlook on the insurer...

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