The rating on Hang Seng Insurance Co. Ltd. reflects the implicit support from the insurer's parent, Hang Seng Bank Limited (AA/Negative/A-1+), and the wider HSBC group in the key market of Hong Kong. The rating on Hang Seng Insurance is 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. Hang Seng Insurance is wholly owned by Hang Seng Bank, which is in turn 62% owned by the Hongkong and Shanghai Banking Corp. (AA/Negative/A-1+). We consider Hang Seng Insurance to be a core member of Hang Seng Bank and the wider HSBC group (see "Hang Seng
