Fubon Life Insurance Co. Ltd.

The stable rating outlook reflects our view that Fubon Life will continue to drive the credit profile of the parent Fubon Financial Holding Co. Ltd. group over the next one to two years, while other major subsidiaries will maintain stable credit profiles over the same period. We believe Fubon Life's enhanced capital adequacy will help it to manage the negative impact of market volatility on its capital and earnings. In addition, we anticipate the insurer will meet additional capital requirements related to its growth plan without materially weakening its capital and earnings. These requirements could include capital outlays to absorb volatility in Fubon Life's investment valuations, support the insurer's overseas subsidiaries, and pursue further organic growth. Furthermore, we believe the

...Fubon Life to 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 with the domestic life insurance average. The insurer benefits from its established franchise and distribution channels as well as an average expense ratio in line with large local peers. We do not expect Fubon Life's competitive position to change significantly over the coming two to three years. Better earning resilience than peers. The insurer's earnings in terms of its return on average assets has been consistently better than its domestic peers. Fubon Life has better interest surpluses than the domestic average, given the insurer's better investment gains and lower burden from legacy negative spread that affects many of its competitors. In addition, Fubon Life has proven its earnings resilience with a good track record through business...

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