The public information rating on Cathay Life Insurance Co. Ltd. reflects the company's leading market position, good operating record, and sound financial flexibility. These strengths are, however, moderated by the company's negative interest spread, increasing market competition, and the currently weak investment environment. Cathay Life is the leading life insurer in Taiwan. In 2000, it had a substantial 41.2% market share in terms of assets, more than double that of the second-largest life insurer. However, the company's market share has been gradually reduced by increasing competition since the emergence of new players in the early 1990s. Cathay Life is expected to retain its leading position, although its market share is expected to fall as the life insurance market opens up.
