The ratings on Cathay Life Insurance Co. Ltd. (Cathay Life) reflect the company's dominant market position, very strong business and financial profile, and strong liquidity and financial flexibility. These factors are partially offset by a currently unfavorable investment environment, and pressure on the company's earnings due to competition and negative spreads. Cathay Life is a wholly owned subsidiary of Cathay Financial Holding Co. Ltd. (Cathay FHC), which was set up in December 2001. The insurance company is the holding company's flagship and the main contributor of its earnings. Cathay Life has a leading market position with market shares of more than 40% and 30% in terms of assets and total premiums respectively. Its size in terms of assets is more
