We view Blue Cross (Asia-Pacific) Insurance Ltd. as a strategically important subsidiary of AIA reflecting our expectation of the group's long-term support and commitment to Blue Cross. We believe Blue Cross is well capitalized to support its gradual expansion in Hong Kong's competitive and fragmented property/casualty (P/C) insurance market. That said, the insurer's underwriting performance remains a constraint. We assigned our 'A+' local currency long-term insurer financial strength and issuer credit rating to Blue Cross. The rating includes three notches of uplift for group support above our assessment of the insurer's 'bbb+' stand-alone credit profile (SACP). The stable outlook on Blue Cross reflects our expectation that the insurer will maintain its SACP and remain a strategically important subsidiary of AIA
