Hang Seng Insurance Co. Ltd.

The stable outlook on Hang Seng Insurance reflects that on HBAP. We believe the insurer will remain a core subsidiary of the banking group over the next two years. It will also indirectly benefit from extraordinary support from the Hong Kong government to HBAP, in our view. We may lower the ratings on Hang Seng Insurance if we downgrade HBAP, or if, in our view, the insurer'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 the bank, or a step-up in the

...Hang Seng Insurance Co. Ltd remains integral to the retail banking and wealth management strategy of HBAP. The Hong Kong-based life insurer operates under an exclusive bancassurance model and benefits from access to the customer base of immediate parent, Hang Seng Bank Ltd. (##-/Stable/A-1+). Hang Seng Insurance also enjoys strong and long-term parent support in terms of capital, business strategy, digital capability, risk management, and governance. We view the insurer as a core subsidiary of HBAP (##-/Stable/A-1+). This provides a rating uplift, based on implicit support from Hang Seng Bank extending to the insurer under all circumstances. Therefore, the ratings on Hang Seng Insurance reflect the '##-' credit profile of the ultimate parent bank. Established brand and extensive distribution network associated with Hang Seng Bank underpin the insurer's strong competitive position. Hang Seng Insurance will likely maintain its growth momentum over the next two years. The life insurer will...

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