Fitch downgrades five Chinese insurers following ratings cut

Fitch Ratings downgraded five Chinese insurers following a cut to the country’s sovereign rating, citing weaker government support. 

The five insurers are China Export & Credit Insurance Corporation, China Taiping Insurance Group, China Taiping Insurance (HK), China Taiping Insurance (0966) and Taiping Life Insurance Company.

Fitch said that Chinese insurers’ investment and asset risk scores are significantly below the sovereign rating, as they have sizeable exposure to equity-type risk assets.

Fitch maintained the A+ insurer financial strength rating of China Life Insurance (2628), citing the insurer’s strong standalone credit profile as resilient to the deterioration in China’s sovereign creditworthiness.

STAFF REPORTER