Bulletin: Earnings Recovery To Help China Taiping Insurance Group's Debt Servicing

HONG KONG (S&P Global Ratings) Dec. 21, 2023--A recovery in earnings will support TP Group's ability to service debt. This is despite an issuance of Chinese renminbi (RMB) 11 billion in perpetual notes by life insurance subsidiary Taiping Life Insurance Co. Ltd. (TPL) earlier this week. TP Group's (China Taiping Insurance Group (HK) Co. Ltd. and China Taiping Insurance Holdings Co. Ltd. [both rated BBB+/Stable/A-2]) increasing focus on insurance margin and on tighter risk control will support earnings prospects. TPL is the major profit contributor to the group, accounting for 81.6% of assets and 74.1% of shareholder equity as of end-2022. The life insurer's net profit improved to RMB10.7 billion according to its quarterly regulatory solvency disclosure as of Sept.

...December 21, 2023 HONG KONG (S&P Global Ratings) Dec. 21, 2023--A recovery in earnings will support TP Group's ability to service debt. This is despite an issuance of Chinese renminbi (RMB) 11 billion in perpetual notes by life insurance subsidiary Taiping Life Insurance Co. Ltd. (TPL) earlier this week. TP Group's (China Taiping Insurance Group (HK) Co. Ltd. and China Taiping Insurance Holdings Co. Ltd. [both rated ###+/Stable/A-2]) increasing focus on insurance margin and on tighter risk control will support earnings prospects. TPL is the major profit contributor to the group, accounting for 81.6% of assets and 74.1% of shareholder equity as of end-2022. The life insurer's net profit improved to RMB10.7 billion according to its quarterly regulatory solvency disclosure as of Sept. 30, 2023, from RMB2.4 billion a year earlier. We believe TP Group will continue to refine its capital structure and increase oversight on debt leverage. TPL will use the notes proceeds to replenish its regulatory...

Bulletin