S&P changes view on Cathay group units to negative

S&P said it changed the outlook to negative from stable on Cathay Life Insurance Co. Ltd., Cathay Financial Holding Co. Ltd. and Cathay Century Insurance Co. Ltd.

“In our view, growing capital market volatility as a result of the Covid-19 pandemic will heighten capital risk for Cathay Life over the next few quarters. We expect several factors to weigh on the insurer's capitalization. These include potential marked-to-market losses on investments, slower capital accumulation and increasing reinvestment risks under the lower-for longer-interest rate environment,” said S&P in a press release.

S&P affirmed its ratings on the companies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.