Union Insurance Co. Ltd.

The stable outlook on Union Insurance reflects our expectation that the insurer will maintain its very strong capital and earnings over the next one to two years. Union Insurance is likely to maintain its underwriting performance in line with its domestic peers over the same period, given its satisfactory underwriting performance on personal line insurance as well as its development of commercial line insurance with adequate underwriting skills and reinsurance arrangements. We expect Union Insurance to maintain a moderate low investment risk appetite with controlled exposure to equities over the next one to two years. We may lower the ratings on Union Insurance if the insurer's financial risk profile deteriorates significantly, possibly due to an aggressive increase in investment risk

...We expect Union Insurance to sustain its market presence in key product lines. We anticipate Union Insurance Co. Ltd. will strive to maintain the competitiveness and penetrate into personal lines in the domestic market over the next one to two years. However, we believe the insurer remains less geographically diverse than its regional peers. We project the insurer's operating performance to remain in line with the domestic norm. Union Insurance's operating performance is likely to remain satisfactory, which is about the industry norm in Taiwan, over the coming two years. This is evidenced by the insurer's quality control in business strategies, prudent underwriting management, and adequate reinsurance arrangements. We assess Union Insurance's capital as a rating strength. Our risk-based capital model indicates that Union Insurance's capital adequacy is excellent and unlikely to weaken over the coming two years. The insurer's satisfactory operating performance and prudent capital management...

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