Fubon Life Insurance Co. Ltd.

This report does not constitute a rating action. Table 1 Overview Key strengths Key risks One of the leading players by domestic market share for its major product lines. Satisfactory capital and earnings with capital sensitivity to potential market volatility. Established business franchise, given large scale and high level of controlled distribution channels. Higher investment leverage and foreign exchange (forex) risk exposure compared to regional peers. Above-average operating performance. 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

...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 next two to three years. Better earnings resilience than peers. The insurer's earnings in terms of its return on average assets (ROAA) has been consistently better than its domestic peers. Fubon Life has better...

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