The ratings reflect Chung Kuo Insurance Co. Ltd.'s strong capital and earnings that provide a good buffer for potential operating volatility, and the insurer's good competitiveness in Taiwan's commercial insurance market despite its personal line franchise is still under development. Counterbalancing these strengths is the insurer's below-average underwriting performance record, which partly results from its higher weighting on commercial lines than the peer average. We view Chung Kuo Insurance as a strategically important subsidiary of the Mega Financial Holding Co. Ltd. (Mega FHC) group and could leverage the group's client base and resources to sustain its overall credit profile. The stable outlook reflects our expectation that Chung Kuo Insurance is likely to maintain its extremely strong capitalization over the coming
