Bulletin: Nan Shan Life Insurance Co. Ltd. Ratings Unaffected By Planned Acquisition

TAIPEI (S&P Global Ratings) Jan. 17, 2017--S&P Global Ratings said today that its ratings and outlook on Taiwan-based Nan Shan Life Insurance Co. Ltd. (A-/Stable/--, cnAA/--) are unaffected by the insurer's plan to acquire Chaoyang Life Insurance Co. Ltd. The Taiwan Insurance Guaranty Fund will compensate Nan Shan Life to the amount of New Taiwan dollar (NT$) 200 million for the negative equity of the distressed insurance company. In our view, the transaction will have a minimal effect on Nan Shan Life's capitalization and credit risk profile. Chaoyang Life is a small operation compared to Nan Shan Life, accounting for about 1% of Nan Shan Life's proforma assets. We expect Nan Shan Life's risk-adjusted capital adequacy to have sufficient buffer

...TAIPEI (S&P Global Ratings) Jan. 17, 2017--S&P Global Ratings said today that its ratings and outlook on Taiwan-based Nan Shan Life Insurance Co. Ltd. (A-/Stable/--, cnAA/--) are unaffected by the insurer's plan to acquire Chaoyang Life Insurance Co. Ltd. The Taiwan Insurance Guaranty Fund will compensate Nan Shan Life to the amount of New Taiwan dollar (NT$) 200 million for the negative equity of the distressed insurance company. In our view, the transaction will have a minimal effect on Nan Shan Life's capitalization and credit risk profile. Chaoyang Life is a small operation compared to Nan Shan Life, accounting for about 1% of Nan Shan Life's proforma assets. We expect Nan Shan Life's risk-adjusted capital adequacy to have sufficient buffer to absorb the additional capital risks following the acquisition. Only a rating committee may determine a rating action and this report does not constitute a rating action....

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