Research Update: Fubon Life Insurance And Fubon Financial Holding Ratings Affirmed On Stable Capital Strength; Outlook Stable

Fubon Life Insurance Co. Ltd.'s total adjusted capital has increased strongly in 2023 and the first half of 2024 on the back of an increase in equity market valuations. We expect the insurer's overall capital and earnings strength to remain at a satisfactory level over the next two years. This is considering Fubon Life's capital sensitivity to potential market volatility and foreign exchange (forex) movements, and uncertainties over financial changes as the sector adopts new accounting norms in 2026. We affirmed our 'A-' long-term local currency issuer credit rating and financial strength rating on Fubon Life. At the same time, we affirmed our 'BBB+' long-term and 'A-2' short-term issuer credit ratings on its parent, Fubon Financial Holding Co. Ltd. (Fubon

...- Fubon Life Insurance Co. Ltd.'s total adjusted capital has increased strongly in 2023 and the first half of 2024 on the back of an increase in equity market valuations. - We expect the insurer's overall capital and earnings strength to remain at a satisfactory level over the next two years. This is considering Fubon Life's capital sensitivity to potential market volatility and foreign exchange (forex) movements, and uncertainties over financial changes as the sector adopts new accounting norms in 2026. - We affirmed our 'A-' long-term local currency issuer credit rating and financial strength rating on Fubon Life. At the same time, we affirmed our '###+' long-term and 'A-2' short-term issuer credit ratings on its parent, Fubon Financial Holding Co. Ltd. (Fubon FHC). - The stable rating outlook on the long-term ratings reflects our expectation that Fubon Life will continue to drive the group credit profile and maintain a stable stand-alone credit profile over the next two years....

Research Update