Solid franchise in Taiwan's life insurance industry. Sustainable leading market position with well-established scale advantage and controlled distribution force. Strong capacity to tap capital markets to support its financial flexibility. Satisfactory investment diversification with strong underlying liquidity. Dim earnings prospects constrain its capital adequacy, with capital and earnings likely to remain 'lower adequate' over the next two years. Large high risk assets relative to slowly growing capital base The ratings on Cathay Life Insurance Co. Ltd. reflect our view of the insurer's strong business risk profile (BRP) and upper-adequate financial risk profile (FRP), which in turn reflect the company's extremely strong competitive position and lower-adequate capital and earnings. Overall, Cathay Life faces moderate industry and country risk due to its
