FITCH UPGRADES TAIWAN’S UNION INSURANCE

Taiwan-based Union Insurance, rocked by a scandal at the beginning of the year involving its then parent Rebar, has been rerated by Fitch following a T$1.5bn ($46.4m) capital injection by new controlling shareholder, China based food processing company Want Want Group. Fitch upgraded Union’s Insurer Financial Strength rating to double B minus from single B plus, while its National Insurer Financial Strength Rating was upgraded to triple B (twn) from double B plus (twn). The outlook for both ratings is stable. Fitch observed that, apart from the August cash injection, Union now had a new financial controller, an audit department that reports directly to the board and a new nine-member board of directors. Union has suffered weak underwriting results and a high cost ratio as a result of the scandal at the start of the year.