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

CPIC HK benefits from a long-term commitment of parental support in terms of capital, business referral, actuarial support, underwriting capacity, investment, and risk management. We view the insurer as a strategically important subsidiary of CPIC Group. This provides two notches of rating uplift over the insurer's 'bbb' stand-alone credit profile. We estimate CPIC HK will continue to report underwriting losses over the next two years. The insurer's expanding local and overseas portfolios could add volatility to its underwriting results, considering its developing--but still-limited--underwriting expertise. We believe CPIC Group will provide timely capital support to the subsidiary amid business expansion and/or regulatory developments. A possible capital injection by the parent group could relieve the strain on the Hong Kong-based insurer's capital.

...China Pacific Insurance Co. (H.K.) Ltd. (CPIC HK) will continue to play an important role in the internationalization strategy of China Pacific Insurance (Group) Co. Ltd. (CPIC Group) over the next two years. The insurer serves as the gateway for its parent group to gain exposure and market insights from offshore business. This supports the parent group's initiatives to expand outside mainland China. CPIC HK benefits from a long-term commitment of parental support in terms of capital, business referral, actuarial support, underwriting capacity, investment, and risk management. We view the insurer as a strategically important subsidiary of CPIC Group. This provides two notches of rating uplift over the insurer's '###' stand-alone credit profile. CPIC HK's modest market presence and still-subdued underwriting performance constrain its competitive position. We believe the insurer will continue to leverage the parent group's network and resources to grow new business outside mainland China....

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