The rating on Cathay Life Insurance Co. Ltd. reflects its outstanding market position in the domestic life insurance market, strong liquidity and financial flexibility, and above-average operating performance. Counterbalancing factors include the sensitivity of its capitalization to the external investment environment. In addition, as the core subsidiary of the Cathay Financial Holding Co. Ltd. (Cathay FHC) group, Cathay Life may be required on a regular basis, or in exceptional circumstances, to provide surplus resources to support other group members. Cathay Life is the flagship company and main earnings contributor of the Cathay FHC group, which has a strong market position with well-balanced business mix. Cathay Life accounted for 64% of the group's total consolidated assets of Taiwan dollar (NT$) 4.0
