We believe that Hang Seng Insurance has a core role in the HSBC group's bancassurance business. We raised the ratings on Hang Seng Insurance to 'AA' from 'A+'. The outlook is negative, reflecting the group's outlook. On Dec. 21, 2009, Standard&Poor's Ratings Services raised its long-term local-currency insurer financial strength and counterparty credit ratings on Hang Seng Insurance Co. Ltd. (Hang Seng Insurance) to 'AA' from 'A+'. The outlook is negative. The ratings upgrade reflects our recognition of Hang Seng Insurance's core role in regards to supporting the bancassurance model of its parent, Hang Seng Bank Limited (AA/Negative/A-1+), and the wider HSBC group in the key market of Hong Kong. The subsidiary is highly integrated with its parent
