Intermediate industry and country risk because inward property and casualty (P&C) reinsurance from sister company China Pacific Property Insurance Co. Ltd. (CPPIC) accounts for a large portion of the business of China Pacific Insurance Co. (H.K.) Ltd. (CPICHK). Less-than-adequate competitive position due to CPICHK's tiny market share in the competitive Hong Kong P&C market. Moderately strong capital and earnings. Adequate financial flexibility and intermediate risk position. Adequate enterprise risk management, and fair management and governance. Strong liquidity profile with no immediate refinancing needs and ample liquid assets. We rate CPICHK two notches above its 'bbb' stand-alone credit profile because we view the insurer as a strategically important subsidiary of China Pacific Insurance (Group) Co. Ltd. (CPIC Group). The stable outlook
