Hang Seng Insurance Co. Ltd.

The stable outlook on Hang Seng Insurance reflects the outlook on HBAP. We believe Hang Seng Insurance will remain a core subsidiary of the banking group over the next two years. In our view, the insurer will indirectly benefit from extraordinary support from the Hong Kong government to HBAP. We may lower the rating on Hang Seng Insurance if we downgrade HBAP, or if our view of Hang Seng Insurance's strategic importance to the group diminishes. We may take this view if we perceive that life assurance business in Hong Kong is becoming less integral to the group's retail banking and wealth management strategy. This could arise from changing market conditions, a shift in emphasis by the bank, or a

...Critical role in the retail banking and wealth management strategy of the parent group. We expect Hang Seng Insurance Co. Ltd., operating under an exclusive bancassurance model, to continue to leverage the access to the customer base of its immediate parent--Hang Seng Bank. Amid the COVID-19 pandemic, the insurer also benefits from technical enablement on digital distribution for business sales and extraordinary financial support from its ultimate parent, HBAP. We view Hang Seng Insurance as a core subsidiary of HBAP. The ratings on the insurer therefore reflect our assessment of the group's credit profile. Established brand and bank networks underpin its strong bancassurance business presence in the Hong Kong life insurance market. Despite the ongoing challenging market environment due to the COVID-19 pandemic, Hang Seng Insurance utilized its parent's digital platform which alleviated some pressure of reduced face-to-face engagements amid social distancing measures. However, a subdued...

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