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 would 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 insurance underwriting 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

...Integral role in its parent group's retail banking and wealth management strategy. Hang Seng Insurance Co. Ltd., operating under an exclusive bancassurance model, benefits from leveraging on access to the customer base of its immediate parent-- Hang Seng Bank Ltd. In addition, the insurer enjoys continued technical support in digital distribution, and extraordinary financial support from its ultimate parent, Hongkong and Shanghai Banking Corp. Ltd. (The) (HBAP; ##-/Stable/--). This digital support was particularly notable during the initial period of the COVID-19 pandemic. We view Hang Seng Insurance as a core subsidiary of HBAP. This provides ratings uplift on the basis of implicit support to Hang Seng Bank, which extends to the insurer, under all circumstances. The ratings on the insurer therefore reflect the Hong Kong-based banking group's credit profile of '##-'. Established brand and bank networks underpin its strong bancassurance business presence in the Hong Kong life insurance market....

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