Fubon Life Insurance Co. Ltd.

The stable outlook on Fubon Life reflects our view that the insurer will remain a core member of the Fubon Financial Holding Co. Ltd. (Fubon FHC) group and continue to dominate the overall group credit profile. As such, the ratings on Fubon Life will move in tandem with the group's consolidated credit profile. We expect the insurer to maintain a strong business risk profile underpinned by its strong control over distribution channels as well as second or third ranking market share by total premiums. We also expect Fubon Life to maintain its good earnings resilience and manage additional capital requirements to support its overseas subsidiaries and ongoing organic asset growth without weakening its capitalization materially. In addition, we believe Fubon

...We expect Fubon Life Insurance to maintain its franchise, established distribution channels, and market share locally. Fubon Life Insurance Co. Ltd. has a broad business diversity and well-diversified customer base and direct agent force nationwide compared to the industry average. The benefits associated with the insurer's franchise and channels are demonstrated by its better than average expense ratio and in line with those of large-size peers. We do not expect Fubon Life Insurance's competitive position in the local market to change over the coming two to three years. Fubon Life Insurance should continue to show better earning resilience than peers'. The insurer's earnings in terms of return on average assets have been stable and consistently better than peers'. Fubon Life Insurance has better interest surpluses than the industry average, given its lower burden from negative spread, and its mortality surplus over non-linked liability ratio also compares favorably with the industry average....

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