Taiwan-based Chung Kuo Insurance Co. Ltd. is likely to retain robust capitalization over the next one to two years, supported by its prudent capital policy and strong commitment from Mega Financial Holding Co. Ltd. (Mega FHC) group, in our view. We have revised down our assessment of Chung Kuo Insurance's liquidity to adequate from exceptional to reflect its reduced liquid assets and an increase in claim reserves amid premium growth. The impact on the credit profile is neutral. We have affirmed our 'A-' local currency long-term financial strength rating and issuer credit rating on Chung Kuo Insurance. The stable outlook reflects our view that Chung Kuo Insurance will maintain its very strong financial risk profile over the next one to
