China Pacific Insurance Co. (H.K.) Ltd.

The stable outlook on CPIC HK over the next two years reflects the outlook on China Pacific Property Insurance Co. Ltd. (CPPIC), a core operating subsidiary of the CPIC Group. We expect CPIC HK to remain a strategically important subsidiary to CPIC Group. The stable outlook also reflects our view that CPIC HK will sustain its strong capitalization and modest competitive position over the next two years. We may downgrade CPIC HK if CPIC Group's credit profile deteriorates or if our view of likely support from the parent group diminishes. We could also lower the ratings on CPIC HK if the insurer's capitalization or competitive position weakens significantly. However, we consider this as unlikely over the next two years. While

...China Pacific Insurance Co. (H.K.) Ltd. (CPIC HK) plays an important role in China Pacific Insurance (Group) Co. Ltd.'s (CPIC Group) internationalization strategy. The insurer acts as a gateway for the group to gain exposure and market insights from offshore business. This includes the parent group's initiatives to expand in overseas markets and in the Greater Bay Area (GBA: Hong Kong, Macau, and Guangdong). CPIC HK benefits from long-term commitment of parental support in terms of business referral, actuarial, underwriting capacity, technology enablement, and risk management. Modest market presence with volatile underwriting performance limits CPIC HK's competitive position. The insurer benefits from leveraging the parent group's network and resources to grow new businesses in both Hong Kong and overseas markets. That said, the insurer's premium will contract in 2021 reflecting its efforts to revamp its existing business portfolio. This follows subdued underwriting results in 2020 after...

Full Report