Nan Shan Life Insurance Co. Ltd.

The negative outlook mainly reflects the industrywide challenges to maintain financial strength over the next one to two years. That's due to the risk that a prolonged low interest rate environment and high uncertainty over the coronavirus pandemic could result in capital market shocks in the coming quarters. Nonetheless, we expect Nan Shan Life to maintain its market position and competitive strength in local distribution channels. We continue to expect that, under Taiwan's regulatory framework for financial service sectors, Nan Shan Life will remain operationally independent from its main shareholders, Taiwan-based Ruentex and Pou Chen Corp. groups. We may lower the ratings if Nan Shan Life makes aggressive investment allocations, its asset liability mismatch deteriorates, or if the insurer reports

...Strong business position as a top-three life insurer in Taiwan. We view Nan Shan Life Insurance Co. Ltd.'s business position as strong, given the insurer is one of the top three players by business scale in Taiwan's life insurance sector. Nan Shan Life has maintained a 16%-17% share of this insurance market in terms of total assets in recent years. The insurer's well established scale has also helped to underpin its overall competitive position. Resilient distribution network with proactive product strategy is a clear competitive edge. Nan Shan Life's well-established scale has helped to attract good talent to its agent channels and a tight relationship with alliance banks, which underpin the resilience of the insurer's distribution network. At the same time, the insurer has a proactive mechanism to formulate and execute product strategies to adapt to market condition changes. About-average capital and earnings with sensitivity to high investment risks. We expect Nan Shan Life will maintain...

Full Report