S&P lifts Mingtai Fire

Standard & Poor's said it raised its financial strength and counterparty ratings on Mingtai Fire & Marine Insurance Co., Ltd. to A from A- following the company's acquisition by Mitsui Sumitomo Insurance Co., Ltd. (MSI, AA-/stable/A-1+) from First Financial Holding Co. (BBB-/stable/A-3) in a cash-based transaction.

At the same time the ratings were removed from CreditWatch, where they were placed with positive implications on April 25. The outlook is stable.

S&P noted the ratings action reflects the expectation of implicit support from MSI. In addition, the ratings on Mingtai Insurance reflect the company's good business position, consistently sound operating performance and adequate capitalization, the agency added.

These strengths are partly offset by the company's high usage of reinsurance and the competitive operating environment in Taiwan, S&P said.

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