Nan Shan Life And Nan Shan General Ratings Placed On CreditWatch Negative Following Regulatory Business Orders

Nan Shan Life recently received regulatory business orders to suspend sales of investment-linked products until the quality of its new information technology (IT) system is reassured. We believe the insurer therefore faces greater challenges in its ability to execute strategy to maintain its strong brand, reputation, and above-industry-average capital adequacy. We are placing our 'A-' long-term issuer credit rating and financial strength ratings on Nan Shan Life and its subsidiary Nan Shan General on CreditWatch with negative implications. We aim to resolve the CreditWatch after we have greater clarity on the potential impact of the IT issues on Nan Shan Life's creditworthiness, particularly its business franchise and management culture, and on the company's progress in resolving the IT system issues.

...September 26, 2019 - Nan Shan Life recently received regulatory business orders to suspend sales of investment-linked products until the quality of its new information technology (IT) system is reassured. - We believe the insurer therefore faces greater challenges in its ability to execute strategy to maintain its strong brand, reputation, and above-industry-average capital adequacy. - We are placing our 'A-' long-term issuer credit rating and financial strength ratings on Nan Shan Life and its subsidiary Nan Shan General on CreditWatch with negative implications. - We aim to resolve the CreditWatch after we have greater clarity on the potential impact of the IT issues on Nan Shan Life's creditworthiness, particularly its business franchise and management culture, and on the company's progress in resolving the IT system issues. TAIPEI (S&P Global Ratings) Sept. 26, 2019--S&P Global Ratings said today that it had placed its 'A-' long-term issuer credit rating and financial strength ratings...

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