Standard & Poor’s Ratings Services announced that it has affirmed its “AA-” long-term insurer financial strength and local currency counterparty credit ratings on Hong Kong-based HSBC Insurance (Asia) Ltd., HSBC Life (International) Ltd., and HSBC Medical Insurance Ltd. It said, “the outlooks on the local currency counterparty credit ratings are stable”.
At the same time, S&P said it has raised its long-term insurer financial strength and local currency counterparty credit ratings on Singapore-based HSBC Insurance (Singapore) Pte. Ltd. to “A” from “A-” to “reflect the insurer’s improved operating performance and closer operational integration within the HSBC group. The outlook on the local currency counterparty credit rating is stable.”
S&P noted: “The ratings on the three Hong Kong-based companies reflect the implicit support from The Hongkong and Shanghai Banking Corp. Ltd. (HSBC, AA-/Stable/A-1+). They also reflect the individual companies’ strong standalone financial profiles and good market positions, as well as their prudent management strategies. These three insurance companies are considered core members of HSBC, and are instrumental to the group’s bancassurance model. They benefit from the outstanding profile of the HSBC brand in Hong Kong and have good growth potential through their access to the extensive distribution network and customer base of HSBC, the largest bank in Hong Kong.
“The ratings on HSBC Insurance (Singapore) reflect the company’s strategic importance to HSBC, its sound capitalization, and its prudent reserving practice. However, these factors are moderated by the company’s relatively small size within the domestic industry.”
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