Nan Shan Life Insurance Co. Ltd.

The stable rating outlook on Nan Shan Life reflects our view that the insurer's increased capital buffer could sustain its key credit metrics despite potential market volatility over the coming two years. We also believe that Nan Shan Life's operations will remain independent of its two main shareholders--Taiwan-based Ruentex and Pou Chen Corp. groups--under Taiwan's regulatory framework for financial service sectors. We may lower the ratings on Nan Shan Life if: The life insurer makes aggressive investment allocations, its asset liability mismatch deteriorates, or has significant unexpected losses that could weaken its capitalization or risk exposure; or We consider Nan Shan Life's overall franchise has weakened or its competitive strength has significantly declined. We may raise the ratings on Nan

...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 domestically by business scale. 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 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, Nan Shan Life has a proactive mechanism to formulate and execute product strategies to adapt to market condition changes, in our view. About-average capital and earnings with sensitivity to high investment risks. We believe that Nan Shan Life will maintain its capital...

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