Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's affirms Ping An Life and Ping An P&C's ratings; outlook stable

 The document has been translated in other languages

20 Oct 2016

Hong Kong, October 20, 2016 -- Moody's Investors Service, ("Moody's") has affirmed the insurance financial strength rating (IFSR) of Ping An Life Insurance Company of China, Ltd. (Ping An Life) at A2, its senior unsecured debt rating at A3 and senior unsecured MTN rating at (P)A3. At the same time, Moody's has affirmed the IFSR of Ping An Property & Casualty Insurance Company of China, Ltd. (Ping An P&C) at A2. The outlook for Ping An Life and Ping An P&C remains stable.

This rating action follows Moody's decision to lower Ping An Bank Co., Ltd's baseline credit assessment (BCA) to ba3 from ba2 but affirm its deposit rating at Baa2 with stable outlook, as announced on October 17, 2016.

For full details on the rating action on Ping An Bank, please refer to the webpage:

https://www.moodys.com/research/Moodys-takes-rating-actions-on-nine-Chinese-banks--PR_356137

RATINGS RATIONALE

The affirmation of Ping An Life and Ping An P&C's ratings reflects the fact that the credit profiles of both companies remain stable at their current rating levels, despite some negative pressure, notably on their asset quality and capital adequacy from the credit weakening of Ping An Bank. Our current IFSRs of A2 already incorporated such considerations. Therefore, the rating action on Ping An Bank has no immediate rating impact on Ping An Life and Ping An P&C.

Ping An Bank is a core part of Ping An Group's business strategy towards being a fully integrated financial services conglomerate, and contributes 34% of group earnings or 53% of group assets at end-2015. Moody's added that while Ping An Bank is well positioned in its BCA of ba3, further credit problems at Ping An Bank could indirectly affect the groups insurance operations through contagion as well as more directly if the Groups insurance companies were called upon to support the re-capitalization of the bank in times of stress.

PING AN LIFE (Lead Analyst: Sally Yim, Senior Vice President)

Ping An Life's A2 IFSR reflects its prominent market position in China, its strong agency distribution which has high productivity when compared to peers, and its strong profitability.

In the past few years, Ping An Life has achieved double-digit premium growth. This is largely due to the fact that Ping An Life is more focused on the agency channel and its parent, Ping An Group, has an integrated platform that promotes cross-selling, given the Group's franchise in other financial services. In addition, its focus on protection elements in its products enables it to achieve good profitability from mortality and morbidity gains. Supported by its growth of new business value, Ping An Life reported an 7.8% increase in its net income in 1H 2016 compared to that in 1H2015. Its return on average assets (ROAA) was 1.2% on a five-year average for 2011-2015, which compares favorably to its similarly rated peers.

The company's capitalization remains solid - as reflected by its solvency ratio under the China Risk-Oriented Solvency System (C-ROSS), the new risk-based capital regime implemented in January 2016 - at 221.3% at end-June, compared to 219.7% at end-March 2016.

Ping An Life also benefits from the Group's financial flexibility, given the Group's good access to the capital markets and franchise strength. Ping An Group was designated as one of the nine global systemically important insurers by the Financial Stability Board in 2013. The designation signals Ping An Group's importance to the financial services industry.

These strengths are offset by Ping An Life's significant exposure to equity securities and alternative investments relative to its capital, high concentration risks from holding large amounts of stocks in finance industry, as well as contagion risks from other Ping An Group companies, notably Ping An Bank.

Ping An Life's high-risk assets to shareholders equity increased noticeably in the past year, mainly driven by a significant increase in alternative investments, as well as the increased exposure to Ping An Bank including an RMB9.7 billion preference share subscription in 1H 2016. Such a high ratio indicates potentially high volatility in its capitalization and earnings from potential investment losses. Furthermore, the company's equity investment portfolio exhibits high concentration risk to the financial industry. Nonetheless, some of the risks could be shared with its policyholders of participating products.

RATING DRIVERS

Ping An Life's rating could be upgraded if there is: (1) a consistent and significant improvement in its capitalization with an adjusted capital-to-assets ratio above 7%; (2) a significant reduction in its exposure to high-risk assets; and/or (3) a significant improvement in the credit profile of Ping An Bank.

On the other hand, the insurer's rating could be downgraded if there is: (1) a continued weakening of capitalization with an adjusted capital-to-assets ratio below 4%; (2) Ping An Life's standalone financial leverage rises above 40%; or earnings coverage drops below 5x; (3) a sharp deterioration in profitability with return-on-capital below 8%; and/or (4) potential re-capitalization burdens from Ping An Bank or other affiliate companies, or the BCA of Ping An Bank is further lowered.

PING AN P&C (Lead Analyst: Stella Ng, Assistant Vice President -- Analyst)

Ping An P&C's A2 IFSR reflects its strong brand recognition, supported by its diversified distribution channels, good underwriting profitability and solid risk-based capitalization.

Ping An P&C has a strong franchise and market presence in China. Its key competitive advantages include its strong agency, cross-selling (mainly with Ping An Life), and telemarketing channels. It remains the second-largest insurer by premiums, with a market share of 18.1% in 1H 2016 (19.1% in 1H 2015). Given that Ping An Puhui Finance (unrated) has been restructuring its products, Ping An P&C's guarantee business for consumer finance from the former company has decreased.

Although Ping An P&C reported a lower level of net income in 1H 2016 compared to that in 1H2015 mainly because of lower investment earnings, its underwriting profitability remains strong. Its combined ratio stood at 95.0% in 1H 2016 compared to 93.6% in 1H 2015 (2015: 95.6%). The improvement in its loss ratio at 55% offset the higher expense ratio at 40% in 1H 2016 amid more competitive conditions in the non-mandatory motor insurance market.

The company's capitalization remains solid, as reflected by its adjusted gross underwriting leverage (GUL) -- a measure of gross premiums and reserves relative to adjusted shareholders' equity for asset risk -- at 4x at end-2015. Its C-ROSS solvency ratio was strong at 289% at end-June, compared to 285% at end-March 2016.

These strengths, however, are partially offset by its increasing exposure to equities and alternative investments, including debt scheme and trust products in pursuit of higher yields. We consider these alternative investments as less liquid and transparent than cash-equivalent or market-traded assets, despite Ping An P&C maintaining its level of credit risk management while most of these investments have credit enhancement features, including third-party guarantees and collateral cover.

Ping An P&C's A2 IFSR incorporates a one-notch downward adjustment from its standalone credit profile of a1, reflecting the potential impact on its financial strength that could arise from problems in other subsidiaries within the group including Ping An Bank.

RATING DRIVERS

Ping An P&C's rating could be upgraded if: (1) it sustains improvement in profitability, such that its combined ratio consistently falls below 92%; (2) it improves capitalization with its GUL staying consistently below 3x; (3) the credit profile of Ping An Bank improves.

On the other hand, the insurer's rating could be downgraded if (1) its combined ratio consistently rises above 100%; (2) its capital adequacy deteriorates to the extent that gross underwriting leverage exceeds 6x; (3) there is a significant increase in high-risk assets leverage; and/or (4) there is potential re-capitalization burden from Ping An Bank, or the bank's BCA is further lowered.

The principal methodology used in rating Ping An Life Insurance Company of China, Ltd. was Global Life Insurers published in April 2016. The principal methodology used in rating Ping An Property & Casualty Insurance Company of China, Ltd. was Global Property and Casualty Insurers published in June 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.

Ping An Life Insurance Company of China, Ltd. is 99.51% owned by Ping An Insurance (Group) Company of China, Ltd (unrated). The insurer offers a range of life insurance and annuity products, including participating, traditional life, universal life, annuities, accident and health insurance, as well as investment-linked products. As of 31 December 2015, its total assets and shareholders' equity was RMB1,632.3 billion and RMB105.5 billion, respectively.

Ping An Property & Casualty Insurance Company of China, Ltd. is 99.51% owned by Ping An Insurance (Group) Company of China, Ltd (unrated). The insurer provides motor, property, liability, guarantee and accident & health insurance, among other lines of business. As of 31 December 2015, its total assets and shareholders' equity was RMB252.1 billion and RMB58.3 billion, respectively.

RATINGS LIST

The ratings outlook are maintained with stable outlook.

Ping An Life -- IFSR affirmed at A2

Ping An Life -- Senior Unsecured rating affirmed at A3

Ping An Life -- Senionr Unsecured MTN rating affirmed at (P)A3

Ping An P&C -- IFSR affirmed at A2

The person who approved Ping An Life Insurance Company of China, Ltd. credit ratings is Simon Harris, MD - Gbl Ins and Mgd Invests, FIG, 44 20 7772 5456, 44 20 7772 5454. The person who approved Ping An P&C Insurance Company of China, Ltd. credit ratings is Sally Yim, Senior Vice President, FIG, (852) 3758-1350, (852) 3551-3077.

The local market analyst for Ping An Life Insurance Company of China, Ltd. ratings is Qian Zhu, VP - Senior Analyst, FIG, +86 21 2057 4020, +(852) 3551 3077.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

The below contact information is provided for information purposes only. Please see the ratings tab of the issuer page at www.moodys.com, for each of the ratings covered, Moody's disclosures on the lead analyst and the Moody's legal entity that has issued the ratings.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

The first name below is the lead rating analyst for this Credit Rating and the last name below is the person primarily responsible for approving this Credit Rating.

Yat Man Sally Yim
Senior Vice President
Financial Institutions Group
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077

Simon Harris
MD-Gbl Ins and Mgd Invests
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077

No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR  PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​​​
Moodys.com