The 'A+' insurer financial strength and counterparty credit ratings on Hang Seng Insurance Co. Ltd. (Hang Seng Insurance) were assigned on Nov. 11, 2002. The outlook on the counterparty credit rating is stable. The ratings reflect the company's strong credit profile and the benefits of being a key subsidiary of Hang Seng Bank Ltd. (Hang Seng Bank; Api/--/--). They also reflect the company's very good business profile, excellent operating performance, and strong capitalization. These factors are moderated by its high exposure to equity investments. Hang Seng Insurance is a wholly owned subsidiary of Hang Seng Bank, Hong Kong's third-largest domestic bank, which in turn is 62.14% owned by Hongkong and Shanghai Banking Corp. Ltd. (HSBC, local currency ratings: AA-/Negative/A-1+; foreign
