Hang Seng Insurance Co. Ltd.

The stable outlook on Hang Seng Insurance reflects the outlook on its ultimate parent, 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 also 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, in our view, Hang Seng Insurance's strategic importance to the parent bank diminishes. We may take this view if we perceive that life insurance 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

...Hang Seng Insurance Co. Ltd. plays a key role in HBAP's retail banking and wealth management strategy. The Hong Kong-based life insurer, operating under an exclusive bancassurance model, benefits from access to the customer base of its immediate parent Hang Seng Bank Ltd. (##-/Stable/A-1+). In addition, Hang Seng Insurance enjoys technical support in digital distribution, and timely financial support (when needed) from its ultimate parent Hongkong and Shanghai Banking Corp. Ltd. (The)(HBAP; ##-/Stable/A-1+). 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, in our view. The ratings on the insurer therefore reflect the ultimate parent bank's credit profile of '##-'. Established brand and extensive distribution network associated with Hang Seng Bank underpin the insurer's strong competitive position. Hang Seng Insurance's growth momentum will likely...

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