Nan Shan Life Insurance Co. Ltd.

The stable rating outlook reflects our expectation that Nan Shan Life's capital and earnings will remain satisfactory over the next two years, supported by moderate premium growth that focuses on long-tenor, protection type products. In addition, we believe Nan Shan Life will maintain its investment risk exposure through close monitoring and proactive risk control amid volatile market conditions. We anticipate no structural change on the investment mix, but a slight increase in equity exposure for the next two years. In our view, the insurer'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 insurer pursues aggressive

...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 total premiums. Nan Shan Life has maintained a 15%-16% 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 and proactive product strategy support 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. Satisfactory capital and earnings with sensitivity to forex risks. We see Nan Shan Life maintaining its capital and earnings at a...

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