NEGATIVE RATING WATCH ON SHIN KONG LIFE

TAIWAN’S third largest life insurer is one of the subsidiaries of Shin Kong Financial Holding Co to have its ratings put on rating watch negative by Fitch. Shin Kong Life Insurance Company currently enjoys an insurer financial strength rating of 'BBB+' and a national insurer financial strength rating of 'AA- (twn)'. According to Fitch to move reflects the pressure faced by Shin Kong Life Insurance to maintain adequate capitalisation. Its first half loss substantially reduced the insurer’s capital cushion and the agency views that recent unfavourable capital market movements would likely impair its capitalisation further. Still Fitch acknowledged the parent company had enjoyed positive progress in its fund raising, including T$8bn common shares and T$4.7bn sub-debts, to support the insurance operation's potential capital needs. And Fitch added it would resolve the rating watch negative status once the capital raising was successfully completed.