Fitch Downgrades Five Chinese Insurers After Sovereign Rating Cut

Fitch Ratings has downgraded five Chinese insurers following its recent cut to China’s sovereign credit rating, citing reduced expectations of government support and higher exposure to risky assets.

The downgraded insurers include China Export & Credit Insurance Corporation, China Taiping Insurance Group, China Taiping Insurance (HK), China Taiping Insurance (0966), and Taiping Life Insurance Company. Fitch noted that these firms hold significant equity-type investment exposures, weakening their asset and investment risk scores.

In contrast, China Life Insurance (2628) maintained its A+ insurer financial strength rating. Fitch stated that China Life’s strong standalone credit profile is resilient despite the sovereign downgrade. – Fitch Ratings