Bulletin: Higher Investment Appetite To Dent China Taiping Insurance Group's Capital Buffers

HONG KONG (S&P Global Ratings) March 27, 2020--China Taiping Insurance Group (HK) Co. Ltd. (TPGHK)'s increased investment appetite and COVID-19 headwinds will reduce its capital buffers. But S&P Global Ratings expects TPGHK's 2019 earnings to keep its capitalization adequate to weather capital market volatility. On March 27, 2020, China Taiping Insurance Holdings Co. Ltd. (CTIH; BBB+/Stable/A-2) reported a 42.2% increase in net profits to HK$12.5 billion for 2019. The increase includes a one-off tax benefit of HK$2.0 billion. CTIH is the Hong Kong-listed flagship subsidiary of Hong Kong-based insurance group TPGHK (BBB+/Stable/A-2). The group's key subsidiaries include Taiping Life Insurance Co. Ltd. (TPL; not rated), Taiping General Insurance Co. Ltd. (TPI; A/Stable/--), Taiping Reinsurance Co. Ltd. (TPRe; A/Stable/--), and China

...March 27, 2020 HONG KONG (S&P Global Ratings) March 27, 2020--China Taiping Insurance Group (HK) Co. Ltd. (TPGHK)'s increased investment appetite and COVID-19 headwinds will reduce its capital buffers. But S&P Global Ratings expects TPGHK's 2019 earnings to keep its capitalization adequate to weather capital market volatility. On March 27, 2020, China Taiping Insurance Holdings Co. Ltd. (CTIH; ###+/Stable/A-2) reported a 42.2% increase in net profits to HK$12.5 billion for 2019. The increase includes a one-off tax benefit of HK$2.0 billion. CTIH is the Hong Kong-listed flagship subsidiary of Hong Kong-based insurance group TPGHK (###+/Stable/A-2). The group's key subsidiaries include Taiping Life Insurance Co. Ltd. (TPL; not rated), Taiping General Insurance Co. Ltd. (TPI; A/Stable/--), Taiping Reinsurance Co. Ltd. (TPRe; A/Stable/--), and China Taiping Insurance (HK) Co. Ltd. (A/Stable/--). Similar to other Chinese peers, equity market volatility and persistent reinvestment challenges...

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