Extremely strong capital adequacy relative to its risk profile, Prudent investment strategy with good asset quality. Adequate access to capital markets as a member of the Mega FHC group. Slightly below-average operating performance record due to its higher commercial insurance business that is exposed to cyclicality. Small capital size, which counterbalances the insurer's extremely strong capital adequacy. The ratings reflect Chung Kuo Insurance Co. Ltd.'s strong capital and earnings that provide a good buffer for potential operating volatility, and the insurer's good competitiveness in Taiwan's commercial insurance market despite its personal line franchise is still under development. Counterbalancing these strengths is the insurer's below-average underwriting performance record, which partly results from its higher weighting on commercial lines than the peer
