Fubon Life Insurance Co. Ltd.

The stable rating outlook on Fubon Life Insurance reflects our view that the insurer can manage the negative impact of market volatility on its capital and earnings over the coming two years. We also anticipate the insurer will fulfill additional capital requirements without materially weakening its capital and earnings. These could include capital outlays to absorb volatility in the insurer's investment valuation, support overseas subsidiaries, or pursue further organic asset growth. Lastly, we believe Fubon Life Insurance can manage its foreign exchange risk exposure by proactively adjusting its hedging strategy, without tempering its capital adequacy. We could lower the long-term ratings on Fubon Life Insurance if: The insurer's risk exposure heightens, which could lead to capital and earnings volatility. This

...Fubon Life Insurance will maintain its established franchise, distribution channels, and market share locally. In our view, Fubon Life Insurance Co. Ltd. has broad business diversity and a well-diversified customer base and nationwide direct agent force compared to the industry average. The benefits associated with the insurer's franchise and channels are demonstrated by its better-than-average expense ratio which is in line with that of large-sized local peers. We believe that Fubon Life Insurance's competitive position is unlikely to change significantly over the coming two to three years. Fubon Life Insurance has better earning resilience than its peers. The insurer's earnings in terms of its return on average assets have been consistently better than its peers. Fubon Life Insurance has better interest surpluses than the industry average, given the insurer's lower burden from negative spread and better investment gains. Fubon Life Insurance has also demonstrated earnings resilience with...

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