The ratings on Nan Shan Life Insurance Co. Ltd. continue to reflect the insurer's strong business risk profile as one of the top three players by total premiums in Taiwan's life sector, high level of controlled distribution network, and good customer retention. The ratings also echo our view of the insurer's sound capital, manageable investment risk, and strong financial flexibility. Counterbalancing the strengths are the insurer's high investments on high-risk assets compared with those of its regional peers and higher exposure to foreign exchange risk than domestic the peer average. The stable outlook reflects our expectation that Nan Shan Life's capital adequacy will remain sound over the next two years, given the insurer's moderate premium growth. That is despite a
