Research Update: Outlook On Nan Shan Life And Nan Shan General Revised To Stable On Increased Capital Cushion; Ratings Affirmed

Nan Shan Life Insurance Co. Ltd.'s good investment performance in the second half of 2020 amid a buoyant equity market has increased its capital cushion. This, coupled with the Taiwan-based life insurer's sustained risk control and capital policy, has reduced pressure on its financial risk profile, in our view. We are revising the rating outlook on Nan Shan Life and its highly strategic subsidiary, Nan Shan General Insurance Co. Ltd., to stable from negative. We are also affirming the 'BBB+' local currency long-term issuer credit rating and financial strength rating on the insurers. The stable outlook reflects our view that Nan Shan Life should be able to withstand potential market volatility over the next 12-24 months. The insurer's added capital

...- Nan Shan Life Insurance Co. Ltd.'s good investment performance in the second half of 2020 amid a buoyant equity market has increased its capital cushion. This, coupled with the Taiwan-based life insurer's sustained risk control and capital policy, has reduced pressure on its financial risk profile, in our view. - We are revising the rating outlook on Nan Shan Life and its highly strategic subsidiary, Nan Shan General Insurance Co. Ltd., to stable from negative. - We are also affirming the '###+' local currency long-term issuer credit rating and financial strength rating on the insurers. - The stable outlook reflects our view that Nan Shan Life should be able to withstand potential market volatility over the next 12-24 months. The insurer's added capital cushion and likely lower capital requirement amid moderating investment growth should support its credit profile....

Research Update