On Aug. 10, 2006, Standard&Poor's Ratings Services affirmed its 'A' insurer financial strength and counterparty credit ratings on Cathay Life Insurance Co. Ltd. (Cathay Life). The outlook is stable. The ratings reflect Cathay Life's strong business franchise, strong market position, above-average operating performance, good capitalization, and good liquidity. However, with the strongest financial profile of the Cathay Financial Holding Co. Ltd. (Cathay FHC, A-/Stable/A-2) group, Cathay Life may be required to provide resources, either on a regular basis or in unexpected circumstances, to weaker group members. Cathay Life is the flagship company and main earnings contributor to Cathay FHC, which has a strong market position in Taiwan's financial sector, and a well-balanced business mix, satisfactory profitability, and satisfactory
