Moody's affirmed the A1 insurance financial strength ratingof Fubon Insurance Co.Ltd., with a stable outlook.
The ratings affirmation reflects the company's strong businessprofile, strong capitalization, strong level of reserve adequacy andconsistently profitable underwriting performance.
The insurer has the strongest stand-alone credit profileamong Fubon Financial Holding Co.Ltd.'s subsidiaries and is therefore constrained by the creditprofiles of other Fubon Financial subsidiaries. As such, an upside or downwardpressure on the insurer's rating may be linked to a ratings upgrade ordowngrade on its sister companies.
Moody's added that upward pressure on the company's ratingis unlikely given its strong stand-alone credit profile, but noted that aratings downgrade is possible if the company's capital strength deteriorates orif its profitability declines significantly.