The ratings on Hang Seng Insurance Co. Ltd. reflect the implicit support from its parent, Hang Seng Bank Limited (AA/Negative/A-1+). The ratings on Hang Seng Insurance are also supported by the insurer's strong business position, prudent investment profile, and sustainable operating performance in the medium term. These strengths are partly offset by lower but satisfactory capitalization mainly because of investment losses. We consider Hang Seng Insurance to be a strategically important member of Hang Seng Bank, the third-largest domestic bank in terms of total assets. Hang Seng Insurance is wholly owned by the bank, which is in turn 62% owned by The Hongkong and Shanghai Banking Corp. (AA/Negative/A-1+). Hang Seng Insurance benefits from its association with the Hang Seng brand
