HONG KONG (Standard&Poor's) Aug. 25, 2004--Standard&Poor's ratings Services said today that it had affirmed its 'A+' insurer financial strength and counterparty credit ratings on Hong Kong's Hang Seng Insurance Co. Ltd. (Hang Seng Insurance). The outlook is stable. The ratings 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. (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. (foreign currency: A+/Stable/A-1; local currency: AA-/Stable/A-1+). Together with its sister company, Hang Seng
