Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
Fitch: Recent Regulatory Developments Have No Material Impact on HK Insurers’ Ratings
Recommend 22 Positive 40 Negative 26 |
||||
|
||||
|
Fitch Ratings stated that many APAC insurers are adopting capital-light product strategies and shifting toward products with lower interest rate sensitivity, particularly protection products related to mortality and morbidity risks. Insurers are also placing greater emphasis on matching product liabilities with available assets, making duration matching a more important part of their business strategies. Stella Ng, Senior Director, APAC Insurance at Fitch Ratings, said allocations to private credit by APAC insurers have grown but remain broadly manageable at current levels. Based on major rated peers within Fitch’s rating universe, private credit accounts for about 5% of total assets. Regarding concerns over MCV (Mainland China Visitor) business, she noted that MCV business remains a key contributor to the overall operations of Hong Kong insurers. However, many insurers are balancing their business mix, including developing local portfolios. For policyholders from Mainland China, MCV products remain attractive, especially savings-type products, which offer more investment options and diversification benefits. As for the impact of recent regulatory developments on the ratings of Hong Kong insurers, she said insurers in Hong Kong have very comprehensive risk management frameworks and are committed to maintaining balanced portfolios. She did not expect any material changes in ratings arising from these factors. On Hong Kong banks, Jonathan Cornish, Head of Asia-Pacific Banks, Fitch Ratings, said strong capital inflows provide a solid earnings outlook for Hong Kong banks, which can offset rising credit costs stemming from asset quality challenges, such as those related to the commercial real estate sector. He added that the worst phase of Hong Kong’s commercial real estate market appears to have initially bottomed out. AASTOCKS Financial News |
||||
Copied to Clipboard
 |
||||
