Press Release - AUGUST 23, 2018

A.M. Best Affirms Credit Ratings of Ping An Health Insurance Company of China, Ltd.


CONTACTS:
 Christie Lee
Director, Analytics
+852 2827 3413
christie.lee@ambest.com

John Andre
Managing Director, Analytics
+1 908 4392200, ext. 5619
john.andre@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

HONG KONG - AUGUST 23, 2018
A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Ping An Health Insurance Company of China, Ltd. (Ping An Health) (China). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Ping An Health’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect the wide range of support the company receives from its two major shareholders, Ping An Insurance (Group) Company of China, Ltd. and Discovery Limited, in terms of financial flexibility, distribution channels and operations.

The capitalization of Ping An Health was strengthened in 2017 through two rounds of capital injection totaling CNY 850 million (approximately USD 128 million) from its shareholders. Furthermore, the company recorded its first net profit since launching, which can be attributed to the implementation of a new business plan that aims to transform the company’s product focus from group health to individual health gradually. A.M. Best expects the company will be able to successfully deliver the individual health-focused business plan and deliver the planned favorable results for the key individual product.

Offsetting rating factors include historical weak operating performance due to intense competition in the group health market and the execution risk of its new business plan, as well as the product concentration risk.

Positive rating actions could occur if Ping An Health can demonstrate continuous favorable operating results. Negative rating actions could occur if Ping An Health’s risk-adjusted capitalization weakens significantly, or if the company’s results materially deviate from its business plan. Negative rating actions also could occur if Ping An Insurance (Group) Company of China, Ltd. reduces the level of support to Ping An Health.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.


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