Research Update: China Pacific Insurance Co. (H.K.) Ltd. Outlook Revised To Stable From Negative, 'A-' Rating Affirmed

On Aug. 29, 2019, S&P Global Ratings revised the rating outlook on CPPIC, a core operating subsidiary of CPIC Group, to stable from negative. We continue to consider CPIC HK to be a strategically important subsidiary of CPIC Group. In our view, CPIC HK has a modest market presence in Hong Kong's P&C market, and the insurer is well-capitalized relative to its risk profile, despite its small capital base. We are revising our outlook on CPIC HK to stable from negative. We are also affirming our 'A-' long-term insurer financial strength and issuer credit ratings on the insurer. The stable outlook on CPIC HK reflects the outlook on the core operating entities of CPIC Group. We expect the insurer to

...Business Risk Profile Fair Competitive position Fair IICRA Intermediate Risk Financial Risk Profile Strong Capital and earnings Strong Risk exposure Moderately low Funding structure Neutral Anchor* ### Modifiers Governance Neutral Liquidity Exceptional Comparable ratings analysis 0 Group or government influence +2 Group support +2 Govt. support 0 Financial Strength Rating A- *This reflects our view of CPIC HK's modest market presence with potential increased volatility on underwriting performance amid new business initiatives, is comparable with peers of a '###' anchor score....

Research Update