The ratings reflect Taiwan-based Cathay Life Insurance Co. Ltd.'s leading market positon and solid franchise in Taiwan's life insurance industry, with well-established scale advantage and controlled distribution force. The ratings also reflect the insurer's strong financial flexibility and adequate enterprise risk management with strong controls on major risk factors. These strengths are somewhat counterbalanced by Cathay Life's modest capital adequacy, though this is a common feature among Taiwan-based life insurers. Cathay Life is the core entity of the Cathay Financial Holding Co. Ltd. (Cathay FHC) group and dominates the group credit profile, representing nearly 70% of the group's total assets and adjusted capital as of June 2018. The stable outlook reflects our view that Cathay Life will remain the flagship
