Union Insurance Co. Ltd.

This report does not constitute a rating action. Overview Key strengths Key risks Very strong capital and earnings relative to risk profile. Smaller scale and less geographically diverse than regional peers. Satisfactory quality and limited foreign exchange (forex) risks of the investment portfolio. Smaller capital base, which is generally more susceptible to a single event. We expect Union Insurance Co. Ltd.'s operating performance to remain satisfactory and close to the domestic average over the next two years. We believe Union Insurance can uphold its underwriting skills and business quality and maintain prudent risk retention over the same period. Our risk-based capital model indicates capital adequacy sustaining under our extreme stress scenario with a 99.99% confidence level over the next two

...Prudent risk retention to sustain satisfactory underwriting performance. We expect Union Insurance Co. Ltd.'s operating performance to remain satisfactory and close to the domestic average over the next two years. We believe Union Insurance can uphold its underwriting skills and business quality and maintain prudent risk retention over the same period. Capital to remain a key credit strength. Our risk-based capital model indicates capital adequacy sustaining under our extreme stress scenario with a 99.99% confidence level over the next two years. The insurer's satisfactory operating performance and prudent capital management support this view, despite its small capital size compared to regional peers. Key product lines underpin the insurer's stable market presence. We anticipate Union Insurance retaining its competitiveness in commercial and personal lines in Taiwan's property &...

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