[ET Net News Agency, 11 October 2019] Moody's Investors Service has affirmed the A2
insurance financial strength rating (IFSR) of New China Life Insurance Company Ltd. (NCI)
(01336). At the same time, Moody's has changed the rating outlook to positive from stable.
The affirmation of the rating reflects the insurer's established market franchise and
diversified product mix. It also has strong capital adequacy, with sustained growth in
capitalization over the past few years. NCI has maintained one of the highest solvency
ratios among the major peers - registering a strong comprehensive solvency margin ratio of
290% at the end of June 2019 - under China Risk Oriented Solvency System (C-ROSS). Its
capitalization has consistently strengthened over the past few years, supported by strong
profitability and prudent dividend payouts.
The change in outlook to positive reflects NCI's successful shift to an agency model and
increased focus on long-term protection products. This strategy has resulted in increased
agency productivity, improved product mix and higher new business margins, in turn
supporting long-term profitability and capital generation. (RC)