Intermediate industry and country risk for Taiwan's property and casualty (P/C, non-life) industry. The company's good competitiveness in Taiwan's commercial insurance market, but still-developing personal insurance business franchise. Slightly below-average underwriting performance track record due to its higher commercial insurance business that is exposed to cyclicality. Extremely strong capital adequacy relative to its risk profile, counterbalanced by small capital scale. Prudent investment strategy with good asset quality. Adequate access to capital markets as a member of the Mega FHC group. Fair management in view of the company's relatively volatile earnings records. Adequate risk control with satisfactory risk culture. Very strong liquidity profile partly due to a prudent investment strategy. The stable outlook reflects our expectation that Chung Kuo Insurance Co.
