Implicit support from The People's Insurance Co. (Group) of China Ltd. (PICC Group) under almost all circumstances as a highly strategic subsidiary. The ratings on PICC Reinsurance Co. Ltd. (PICC Re) reflect our view that the reinsurer plays a very important role in PICC Group's internationalization strategy. This role includes the group's initiative in serving Chinese corporates' insurance needs in overseas market. We also expect the China-based reinsurer to play an increasing role in the group's risk management strategy and gradually introduce industry insights to the parent group and to the Chinese insurance market. We therefore view PICC Re as a highly strategic subsidiary of its ultimate parent, PICC Group, and rate the reinsurer one notch lower than our assessment
