Taiwan-based Chung Kuo Insurance Co. Ltd.'s capitalization is likely to weaken due to substantial claim losses on its COVID-19 pandemic insurance policies sold during 2021-2022. The potential level of weakened capitalization, however, remains highly sensitive to the evolution of the pandemic outbreak in Taiwan, as well as the insurer's potential capital and asset disposal plans. We have therefore placed our 'A-' long-term local currency financial strength rating and issuer credit rating on Chung Kuo Insurance on CreditWatch with negative implications. On June 8,2022, S&P Global Ratings placed its 'A-' long-term local currency financial strength rating and issuer credit rating on Chung Kuo Insurance on CreditWatch with negative implications. Such a high level of losses would lead to a material drop
