Research Update: Chung Kuo Insurance Co. Ltd. 'A-' Ratings Affirmed On Revised Capital Model Criteria; Outlook Remains Stable

On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see "Insurer Risk-Based Capital Adequacy – Methodology And Assumptions"). The implementation of the revised criteria has minimum impact on our assessment of Taiwan-domiciled Chung Kuo Insurance Co. Ltd.'s credit profile. We affirmed our 'A-' local currency long-term issuer credit and financial strength ratings on Chung Kuo Insurance. The stable rating outlook reflects our view that Chung Kuo Insurance will maintain its very strong financial risk profile over the next one to two years, as well as a prudent investment strategy and manageable foreign exchange risk exposure. On April 3, 2024, S&P Global Ratings affirmed its 'A-' local currency long-term issuer credit and financial strength ratings on

...Key strengths Key risks Very strong financial risk profile with a satisfactory investment risk profile and group capital support. Smaller scale and less geographically diverse than regional peers. Diversified asset allocations with good asset quality and limited foreign exchange exposure. Small capital base, which is generally more vulnerable to a single extreme event....

Research Update