Research Update: Nan Shan Life Insurance 'BBB+' Ratings Affirmed Following Revised Capital Model Criteria; Outlook Remains Stable

On Nov. 15, 2023, S&P Global Ratings published its revised criteria for analyzing insurers' risk-based capital (see "Insurer Risk-Based Capital Adequacy--Methodology And Assumptions"). We have reviewed our ratings on Nan Shan Life Insurance Co. Ltd. under the revised criteria with no impact on the ratings. We affirmed our 'BBB+' local currency long-term financial strength and issuer credit ratings on Nan Shan Life. We removed the ratings on Nan Shan Life from under criteria observation (UCO) where we placed them on Nov. 16, 2023. The outlook remains stable, reflecting our expectation that Nan Shan Life's capital and earnings will remain satisfactory over the next two years. On Nov. 29, 2023, S&P Global Ratings affirmed its 'BBB+' long-term local currency financial strength

...Key strengths Key risks Strong business position as one of the top three players in Taiwan's life insurance sector. Average capital adequacy by local comparison, albeit slightly worse than similar rated global peers. High level of controllable distribution channels. Higher foreign exchange risk exposure and investment leverage than its regional peers Well-established scale advantage....

Research Update