The ratings on Hang Seng Insurance Co. Ltd. (Hang Seng Insurance) reflect the company's good operating performance, strong capitalization, and high liquidity as well as the advantages it derives from its status as a wholly owned subsidiary of Hang Seng Bank Ltd. (Hang Seng Bank, Api/--/--). These positive factors are, however, moderated by a recent softening of premium rates. Hang Seng Insurance's parent, Hang Seng Bank Ltd., is 62.14% owned by Hongkong&Shanghai Banking Corp. Ltd. (HSBC, foreign currency: A+/Stable/A-1; local currency: AA-/Stable/A-1+). Together with its sister company, Hang Seng Life Ltd. (Hang Seng Life, A+/Stable/--), Hang Seng Insurance forms the insurance arm of Hang Seng Bank. Hang Seng Insurance has a good business profile as it generates the
