AM Best affirms the credit ratings of Nan Shan General Insurance Co., Ltd.

HONG KONG, March 17, 2023—(BUSINESS WIRE)–AM Best affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Nan Shan General Insurance Co., Ltd. (Nan Shan General) (Taiwan). The outlook for these credit ratings (ratings) is stable.

The ratings reflect the strength of Nan Shan General’s balance sheet, which AM Best rates as very strong, as well as its adequate operating results, neutral business profile and appropriate enterprise risk management (ERM).

Nan Shan General’s risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR), deteriorated materially towards the end of 2022 due to large claims arising from pandemic insurance products. Unfavorable capital losses from investments and dividend payments in the first half of 2022 also weakened the company’s capital position. AM Best expects the company to rebuild its capital strength from the express financial support provided by its immediate parent, Nan Shan Life Insurance Co., Ltd. (Nan Shan Life) as well as to resume its capital growth by retaining the net profits received from non-pandemic insurance and investing in the medium to long term based on the company’s business and capital plans. AM Best expects the company’s risk-adjusted capitalization to recover to a supportive level in the second half of 2023.

Nan Shan General reported a significant net loss of TWD 1.3 billion as of the end of September 2022. AM Best expects the company to report a large loss for the full year 2022, compared to a net profit of TWD 351 million for the full year 2021, mostly attributable of pandemic insurance claims. AM Best expects the final amount of claims to remain stable in the first half of 2023. The company’s monthly gross claims paid have shown a steady downward trend since November 2022. AM Best considers the pandemic insurance loss to be a one-time event and the company should be able to gradually recover its losses through traditionally profitable non-pandemic insurance and investment results, although it is unlikely to do so in the short to medium term.

Nan Shan Life is the third largest life insurance company in Taiwan in terms of total assets. Although Nan Shan General’s business scale is small within Nan Shan Life, the company benefits from parent support in terms of shared brand recognition, strong distribution support, and operational and capital commitments.

Negative rating actions may occur if Nan Shan General exhibits a material and sustained deterioration in operating results, particularly with respect to the non-pandemic traditional insurance portfolio and investment results. Negative rating actions may also occur if there is a material or sustained decline in the company’s risk-adjusted capitalization; for example, due to an unfavorable deviation from its capital plan or a much faster than expected expansion of insurance risks. Adverse rating actions may also occur if Nan Shan Life experiences a significant deterioration in its credit fundamentals, which AM Best would consider to have a material adverse impact on Nan Shan General.

Ratings are communicated to rated entities prior to publication. Unless otherwise stated, ratings have not changed since this announcement.

This press release refers to the credit ratings that are published on the AM Best website. For all rating information relating to the release and relevant disclosures, including details of the agency responsible for issuing each of the individual ratings set out in this release, please see AM Best’s Recent assessment activity Web page. For additional information on the use and limitations of credit score opinions, please see Guide to Best Credit Ratings. For information on the proper use of Best’s credit ratings, Best’s performance ratings, Best’s preliminary credit ratings, and AM Best’s press releases, see A guide to the proper use of Best’s ratings and reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit

Copyright © 2023 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Check out the source version on


Madison fan
A financial analyst
+852 2827 3416
[email protected]

James Chan
Assistant Director
+852 2827 3413
[email protected]

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
[email protected]

Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098
[email protected]

Leave a Comment

Your email address will not be published. Required fields are marked *