On Nov. 21, 2016, S&P Global Ratings(“S&P”) affirmed its 'A+' long-term insurerfinancial strength and issuer credit ratings on China Reinsurance (Group)Corp. (China Re Group) and its core subsidiaries China Property & CasualtyReinsurance Co. Ltd. (China Re P&C) and China Life Reinsurance Co. Ltd. (ChinaRe Life). The outlook on these companies remains negative.
They also affirmed 'cnAAA' long-term Greater China regional scale ratings onChina Re Group, China Re P&C, and China Re Life.
The rating affirmation reflects China Re Group's very strong competitive
position, that the group's strong brand and leading position in China's
reinsurance market, high level of controlled product distribution, and
diversified sources of revenue underpin. It also reflects S&P’S view of the highlikelihood of extraordinary support from the Chinese government, and their expectation that China Re Group's strong capitalization will remain supportivedespite heightening investment risk.
Theyalso believe China Re Group's capitalization can absorb the group's graduallyheightening investment risk.They expect the group's underwriting performance to remain stable over the next twoyears, as the group will undertake a gradual approach toward overseasexpansion.
They expect China Re Group's strengthenedcapitalization after its US$2.0 billion IPO in 2015 to support the group'sbusiness expansion and help it to absorb catastrophe losses over the next twoyears.
They expect the massive flooding in certain regions in China in June
and July this year to have limited impact on the group's capital and earnings,and the group has adequately reserved for the claims arising from the Tianjinexplosion in August 2015.