Nan Shan Life Insurance Co. Ltd.

The stable rating outlook reflects our view that Nan Shan Life will maintain its capital and earnings and accordingly, a satisfactory financial risk profile over the next two years. Moderate premium growth with a focus on long-tenor, protection type products should underpin its stable capital and earnings. We believe Nan Shan Life will keep its investment risk exposure relatively unchanged through close monitoring and proactive risk controls amid still volatile market conditions. We anticipate no structural change in the investment mix over the next two years. In addition, we anticipate 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 the financial services sector. We may lower the ratings

...Strong business position as a top three life insurer in Taiwan. We assess Nan Shan Life Insurance Co. Ltd. has a strong business position, given the insurer is one of the top three players domestically by total premiums. The company has maintained a 13%-15% market share in terms of total assets and total premiums in recent years. In addition, Nan Shan Life's well-established scale has 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. We believe these factors underpin the resilience of the insurer's distribution network. At the same time, Nan Shan Life proactively formulates and executes product strategies to adapt to market conditions, in our view. Strong capital and earnings albeit sensitive to forex risk. We see Nan Shan Life maintaining its capital and earnings at...

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