Research Update: Blue Cross (Asia-Pacific) Insurance Ltd. 'A+' Ratings Affirmed Following Revised Capital Model Criteria; Outlook Stable

On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see "Insurer Risk-Based Capital Adequacy--Methodology And Assumptions"). The implementation of the revised capital model criteria has no material impact on our view of the financial strength of Blue Cross (Asia-Pacific) Insurance Ltd. We continue to assess Blue Cross as a strategically important subsidiary of AIA (AIA Group Ltd. and its subsidiaries), the ultimate parent. This reflects the group's long-term commitment of support to Blue Cross. We affirmed our 'A+' long-term issuer credit and financial strength ratings on Blue Cross. We removed the ratings from under criteria observation. The stable outlook on Blue Cross reflects our rating outlook on AIA, and our view that Blue Cross will

...Key strengths Key risks Extraordinary support from AIA, if needed, in most circumstances, given its status as a strategically important subsidiary of the group. Modest business position and subdued underwriting performance in Hong Kong's highly competitive health insurance and property/casualty (P/C) market. Healthy capitalization commensurate with Blue Cross' business growth strategy and risk profile....

Research Update