MELBOURNE (S&P Global Ratings) May 29, 2023--Asia-Pacific insurers are fortified against a 10% fall in regional equity markets, S&P Global Ratings stress tests show.
That's according to a report we published today, titled, "Asia-Pacific Insurers Can Hold Firm When Equity Markets Wobble."
In the event of further equity market declines, we believe insurers we rate in Asia-Pacific would have less financial buffer, but our ratings on them would likely remain intact.
Our analysis shows about half of the insurers we rate hold a level of capital within 10% of the capital adequacy to support the credit rating, based on recent financial results.
A thin capital adequacy buffer weakens the ability of companies to contend with unexpected shocks. We structured the tests to identify insurance companies operating in Asia-Pacific that could be more exposed to ratings pressure if regional equity markets materially decline this year.
This report does not constitute a rating action.
AUSTRALIA
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The report is available to subscribers of RatingsDirect at www.capitaliq.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to research_request@spglobal.com. Ratings information can also be found on S&P Global Ratings' public website by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
| Primary Credit Analyst: | Craig A Bennett, Melbourne + 61 3 9631 2197; craig.bennett@spglobal.com |
| Secondary Contacts: | WenWen Chen, Hong Kong + 852 2533 3559; wenwen.chen@spglobal.com |
| Toshiko Sekine, Tokyo + 81 3 4550 8720; toshiko.sekine@spglobal.com | |
| Patty Wang, Taipei +886-2-2175-6823; patty.wang@spglobal.com | |
| Emily Yi, Hong Kong + 852 2532 8091; emily.yi@spglobal.com | |
| Billy Teh, Singapore + 65 6216 1069; billy.teh@spglobal.com | |
| Media Contacts: | Richard J Noonan, Melbourne + 61 3 9631 2152; richard.noonan@spglobal.com |
| Ning Ma, Hong Kong (852) 2912-3029; ning.ma@spglobal.com |
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