Research Update: China Taiping Insurance Group Ratings Affirmed On Government Support; Outlooks Stable

TP Group's capital buffer will likely be thin over the next two years. This follows a net asset decline in 2021 amid investment valuation losses. We are therefore lowering the insurance group's credit profile, before considering government support, to 'bbb+' from 'a-'. At the same time, we believe TP Group will continue to benefit from the high likelihood of extraordinary support from the Chinese government. Thus, the group credit profile of 'a' after considering government support, is unchanged. We are affirming our ratings on the group's holding companies, TPGHK and CTIH, and rated operating subsidiaries. We are also affirming our issue ratings on the senior unsecured notes the special purpose vehicles of TPGHK and CTIH issued and the holding companies

...- TP Group's capital buffer will likely be thin over the next two years. This follows a net asset decline in 2021 amid investment valuation losses. We are therefore lowering the insurance group's credit profile, before considering government support, to '###+' from 'a-'. - At the same time, we believe TP Group will continue to benefit from the high likelihood of extraordinary support from the Chinese government. Thus, the group credit profile of 'a' after considering government support, is unchanged. - We are affirming our ratings on the group's holding companies, TPGHK and CTIH, and rated operating subsidiaries. We are also affirming our issue ratings on the senior unsecured notes the special purpose vehicles of TPGHK and CTIH issued and the holding companies guarantee. - The stable outlooks on TP Group entities reflect our view of a high likelihood of extraordinary support from the Chinese government over the next two years....

Research Update