Research Update: China Taiping Insurance Group Entities Outlook Revised To Stable On Easing Debt-Servicing Strain; Ratings Affirmed

The increasing focus of TP Group (China Taiping Insurance Group [HK] Co. Ltd. [TPGHK] and its subsidiary China Taiping Insurance Holdings Co. Ltd. [CTIH]) on insurance margins, with tightening risk selection and investment-risk control, should help stabilize its earnings over the next two years. This, together with the group's increasing oversight on debt utilization, should alleviate pressure on its funding capacity. We are revising our rating outlook on TPGHK, CTIH, and the rated operating subsidiaries of the group to stable from negative. We affirmed our rating on the companies and on the senior unsecured notes the special purpose vehicles of TPGHK issued and the holding companies guarantee. The stable outlooks on the TP Group entities reflect our view of a

...- The increasing focus of TP Group (China Taiping Insurance Group [HK] Co. Ltd. [TPGHK] and its subsidiary China Taiping Insurance Holdings Co. Ltd. [CTIH]) on insurance margins, with tightening risk selection and investment-risk control, should help stabilize its earnings over the next two years. - This, together with the group's increasing oversight on debt utilization, should alleviate pressure on its funding capacity. - We are revising our rating outlook on TPGHK, CTIH, and the rated operating subsidiaries of the group to stable from negative. We affirmed our rating on the companies and on the senior unsecured notes the special purpose vehicles of TPGHK issued and the holding companies guarantee. - The stable outlooks on the TP Group entities reflect our view of a high likelihood of extraordinary support for the group from the Chinese government. We also expect the group to maintain its strong business franchise and modest financial profile over the next two years....

Research Update