Fitch Ratings Recaps Rating Actions Taken in APAC Insurers Coronavirus Review

(The following statement was released by the rating agency) Fitch Ratings-Singapore/Hong Kong-12 June 2020: Fitch Ratings took 58 rating actions on insurance companies in APAC following a portfolio review in response to the sharp downward revision of global GDP growth forecasts due to the negative impact of the coronavirus pandemic. Affirmation with Stable Outlook accounted for the largest share of the rating actions, followed by Outlook revisions to Negative. In the rating review, Fitch assessed the impact of coronavirus pandemic using a set of rating assumptions. The assumptions were used to develop pro-forma financial metrics for the insurers, which we compared with rating guidelines defined in Fitch's Insurance Rating Criteria and previously established rating sensitivities for the companies. Fitch took negative rating actions if the pro forma results fell outside prior rating sensitivities or criteria guidelines. The rating assumptions relate primarily to market value declines in capital market instruments typically owned or traded by insurance companies, the level of market interest rates, the capital market access of insurers, the infection and mortality rate of the pandemic as well as the influence of the crisis on loss ratios, among other considerations. Negative rating actions, including Outlook revisions to Negative and Downgrades, made up more than 30% of the rating actions. Of these, 61% were on life insurers, followed by non-life (22%) and composite/ multiline companies (11%). Further details are in the report "Coronavirus Rating Impact: APAC Insurers" available at www.fitchratings.com or by clicking the link above. Contact: Siew Wai Wan Senior Director +65 6796 7217 Fitch Ratings Singapore Pte Ltd. One Raffles Quay #22-11, South Tower Singapore 048583 Terrence Wong Senior Director +852 2263 9920 Teruki Morinaga Director +81 3 3288 2781 Kanishka de Silva Associate Director +61 2 8256 0367 Jeffrey Liew Senior Director, Head of APAC Insurance +852 2263 9939 Media Relations: Leslie Tan, Singapore, Tel: +65 6796 7234, Email: leslie.tan@thefitchgroup.com Wai Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: wailun.wan@thefitchgroup.com Additional information is available on www.fitchratings.com ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTPS://WWW.FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. 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