On 07 December 2023, we changed to negative from stable the outlook on China Life Insurance (Overseas) Company Ltd (China Life Overseas), following Moody's affirmation of the Government of China's issuer rating at A1 and change in the outlook to negative from stable.

Moody's has affirmed China Life Overseas' A1 IFSR, which incorporates the company’s a3 Baseline Credit Assessment (BCA), and a two-notch uplift based on our expectation of a strong level of support from and a moderate level dependence, reflecting its significant exposure to the Government of China (A1 negative) and state-owned entities (SOEs).

Its a3 BCA reflects improved capital position and asset quality, and its management's actions in preparation for the upcoming risk-based capital regime in Hong Kong SAR, China (HKRBC) . These strengths are offset by the insurer's high reliance on the bancassurance channel, limited product diversification and reliance on interest spreads.