Analysts at S&P Global Ratings have warned that investment market volatility will constrain China Reinsurance (Group) Corp.’s earnings, potentially eating into its capital buffer and potentially eclipsing the progress it has made in overhauling its underwriting.
The rating agency notes that China Re is more susceptible to credit and market risks than its international peers due to the its greater allocation of high-risk assets, reflecting its large life reinsurance book.
It also reflects China Re’s ongoing efforts to bolster investment income to offset underwriting margin pressure.
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