Research Update: Union Insurance Co. Ltd. 'A-' Ratings Affirmed On Revised Capital Model Criteria; Outlook Remains Stable

On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see "Insurer Risk-Based Capital Adequacy--Methodology And Assumptions"). The implementation of the revised criteria has minimum impact on the credit profile of Taiwan-domiciled Union Insurance Co. Ltd. In our view, Union Insurance's asset allocation benefits its liquidity and supports a higher liquidity assessment exceptional from adequate previously. This has no impact on the overall credit profile. We affirmed our 'A-' local currency long-term issuer credit and financial strength ratings on Union Insurance. The stable rating outlook reflects our expectation that the property and casualty (P/C or non-life) insurer can maintain its very strong financial strength over the next two years. On April 3, 2024, S&P Global Ratings

...Key strengths Key risks Very strong capital and earnings relative to risk profile. Smaller scale and less geographically diverse than regional peers. Satisfactory quality and limited foreign exchange (forex) risks of its investment portfolio. Small capital base, which is generally more susceptible to a single event....

Research Update