The ratings on Cathay Life Insurance Co. Ltd. reflect the insurer's outstanding market position in the domestic life insurance market, as well as the company's strong liquidity and financial flexibility. Counterbalancing factors include the sensitivity of its capitalization to the external investment environment and the difficulties Cathay Life faces in enhancing its profitability amid the current low interest rate environment. In addition, as the flagship entity of the Cathay Financial Holding Co. Ltd. (Cathay FHC; BBB+/Stable/A-2) 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
