The 'A+' long-term insurer financial strength and counterparty credit ratings on Cathay Life Insurance Co. Ltd. (Cathay Life) were affirmed on Sept. 8, 2004. The outlook on the ratings is stable. The ratings reflect Cathay Life's good operating performance, and strong business franchise, liquidity, and financial flexibility. These factors may be partially offset by likely pressure on the company's market position and earnings because of strong domestic competition. Cathay Life is a wholly owned subsidiary of Cathay Financial Holding Co. Ltd. (Cathay FHC; BBB+/Stable/A-2). It is the flagship of the group and the main earnings contributor. At the end of June 2004, the company accounted for 62% of Cathay FHC's consolidated assets of NT$2.5 trillion and 58% of Cathay FHC's
