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Asia-Pacific Insurers Can Hold Firm When Equity Markets Wobble, Report Says

MELBOURNE (S&P Global Ratings) May 29, 2023--Asia-Pacific insurers are fortified against a 10% fall in regional equity markets, S&P Global Ratings stress tests show.

That's according to a report we published today, titled, "Asia-Pacific Insurers Can Hold Firm When Equity Markets Wobble."

In the event of further equity market declines, we believe insurers we rate in Asia-Pacific would have less financial buffer, but our ratings on them would likely remain intact.

Our analysis shows about half of the insurers we rate hold a level of capital within 10% of the capital adequacy to support the credit rating, based on recent financial results.

A thin capital adequacy buffer weakens the ability of companies to contend with unexpected shocks. We structured the tests to identify insurance companies operating in Asia-Pacific that could be more exposed to ratings pressure if regional equity markets materially decline this year.

This report does not constitute a rating action.


S&P Global Ratings Australia Pty Ltd holds Australian financial services license number 337565 under the Corporations Act 2001. S&P Global Ratings' credit ratings and related research are not intended for and must not be distributed to any person in Australia other than a wholesale client (as defined in Chapter 7 of the Corporations Act).

The report is available to subscribers of RatingsDirect at If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to Ratings information can also be found on S&P Global Ratings' public website by using the Ratings search box located in the left column at Members of the media may request a copy of this report by contacting the media representative provided.

Primary Credit Analyst:Craig A Bennett, Melbourne + 61 3 9631 2197;
Secondary Contacts:WenWen Chen, Hong Kong + 852 2533 3559;
Toshiko Sekine, Tokyo + 81 3 4550 8720;
Patty Wang, Taipei +886-2-2175-6823;
Emily Yi, Hong Kong + 852 2532 8091;
Billy Teh, Singapore + 65 6216 1069;
Media Contacts:Richard J Noonan, Melbourne + 61 3 9631 2152;
Ning Ma, Hong Kong (852) 2912-3029;

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