Moody's A Rms Ratings of Ping An Life, Ping An P&C, and POAH Outlook Stable A RM Ratings of Ping An Bank Changes Outlook To Stable From Positive

2023/11/14 11:38 Moody's - credit ratings, research, and data for global capital markets
Moody's affirms ratings of Ping An Life, Ping An P&C, and

POAH; outlook stable; affirm ratings of Ping An Bank;
changes outlook to stable from positive
Rating Action | 19 min read

14 Nov 2023 Moody's Investors Service
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Hong Kong , November 14, 2023 – Moody's Investors Service has affirmed
the A2 Insurance financial strength rating (IFSR) of Ping An Life Insurance
Company of China, Ltd. (Ping An Life) and Ping An P&C Insurance Company
of China, Ltd. (Ping An P&C), and the Baa2 issuer rating of China Ping An
Insurance Overseas (Holdings) Limited (PAOH). The outlooks remain
stable for these entities.
Moody's has also affirmed Ping An Bank Co., Ltd's (PAB) long-term/short-
term foreign currency deposit ratings of Baa2/P-2, the bank's Baseline
Credit Assessment (BCA) of ba2, Adjusted BCA of baa3, long-term/short-
term local and foreign currency Counterparty Risk Ratings (CRRs) of
Baa1/P-2, and long-term/short-term Counterparty Risk Assessments of
Baa1(cr)/P-2(cr). At the same time, Moody's has changed the bank's rating
outlook to stable from positive.
In addition, Moody's has affirmed (P)A3 rating of Ping An Life's senior

unsecured medium-term note (MTN) program.
Moody's has also affirmed the Baa2 rating on PAOH's senior unsecured
debt and long-term/short-term (P)Baa2/(P)P-2 rating on its senior
unsecured MTN program.
At the same time, Moody's has affirmed the long-term/short-term

(P)Baa2/(P)P-2 rating on the senior unsecured MTN program by Vigorous
Champion International Limited (Vigorous Champion), which has an
unconditional and irrevocable guarantee from PAOH and a Baa2 rating on
the senior unsecured debt issued under this MTN program. The entity-level
outlook on Vigorous Champion remains stable.
Please click on this link

https://www.moodys.com/researchdocumentcontentpage.aspx? Contents
https://www.moodys.com/research/null-Moodys-affirms-ratings-of-Ping-An-Life-Ping-An-PC-Rating-Action--PR_1000008506 1/16
docid=PBC_1000008573 for the List of Affected Credit Ratings. This list is

RATINGS RATIONALE
an integral part of this Press Release and identifies each affected issuer.
REGULATORY DISCLOSURES
RATINGS RATIONALE
Related Entities
PING AN LIFE:
Read Next
The affirmation of Ping An Life's A2 IFSR incorporates (1) the company's
Podcast
standalone credit profile of a1, reflecting its prominent market position in
China, revamped agency force with high productivity, overall good
profitability, and solid capitalization; and (2) a one-notch downward
adjustment from the standalone credit profile, reflecting Ping An Life's
exposure to contagion risk from other non-insurance business and
investments owned by Ping An Insurance (Group) Co of China, Ltd. (Ping
An Group). Potential risks from these businesses and investments could
indirectly affect the group's insurance operations through contagion, as
well as more directly if the group's insurance companies were called upon
to support its affiliates in times of stress.
Ping An Life maintains a solid market position as China's second-largest life

insurer because of its strong brand recognition. The insurer also continues
to benefit from Ping An Group's integrated platform, which helps with
cross-selling and customer reach.
Ping An Life has been shifting away from its heavy reliance on its agency
channel to a multichannel strategy and prioritizing the quality of its agency
force over quantity. Its agency productivity has improved, despite the
smaller size of its agency force, and its bancassurance channel started to
contribute over 10% of its new business value (NBV).
However, weak sales of its high-margin critical illness products and strong
sales of its lower-margin long-term savings products have driven down
Ping An Life's overall product margin – although the margin remains high
compared with its domestic peers. Its change in product mix also increases
its earnings reliance on spread gains.
Despite suffering from the impairment losses of its real estate related
investments, Ping An Life has maintained overall good profitability and
solid capitalization because of its large profitable book of in-force business.
In the first half of 2023, Ping An Group's life and health segment reported a
4.5% growth in its net profit to RMB46.3 billion and a 45% growth in its
NBV under the IFRS 17 standard on a like-for-like basis. Ping An Life's return
on average assets over the past five years is over 2%, higher than its major
domestic peers.
However, declining investment yields in China's prolonged low interest rate

RATINGS RATIONALE
environment will dampen the insurer's profitability because of spread
compression. Its high investment exposure to equities also increases its
earnings volatility because of capital market fluctuations. Its profitability
could also suffer from further impairment charges, given its sizable
Related Entities
investments in the property sector where credit condition remains under
Read Next
stress.
Podcast As of the end of September 2023, its core and comprehensive solvency
ratios were 121.5% and 213.9%, respectively, under the China Risk Oriented
Solvency System (C-ROSS) Phase II, well above the minimum regulatory
requirements. However, Ping An Life's capitalization remains strained by
higher reserves as a result of declining discount rate, its vulnerability to
capital market volatility given its increasing equity investment and a high
dividend payout ratio to support the capital needs of its parent, Ping An
Group.
In addition, the a1 standalone credit profile has always incorporated Ping

An Life's relatively high investment risk. The insurer has high exposure to
equity and alternative investments compared with its capital base. Its high-
risk assets/shareholders' equity was 391.1% as of the end of 2022, which is
high compared with that of its major peers. The insurer's equity portfolio,
including its long-term equity investments, is concentrated in the finance
and property industries, with high single-name concentration.
Ping An Life's property investments are largely made through its equity and
alternative investments holdings. In particular, the insurer owns a 46.8%
stake in Ping An Real Estate Company Ltd. (Ba1 negative), whose credit
profile is under stress. Nevertheless, given the relatively small size of this
investment compared to Ping An Life's large asset and capital bases, the
direct adverse credit impact to the insurer's profitability and capital is
limited. The insurer has disposed or taken impairment charges on some of
its equity holdings of troubled property developers over the past three
years, which has reduced its related risk exposure but increased its
impairment losses.
The (P)A3 rating on Ping An Life's senior unsecured MTN program is one
notch below the A2 IFSR to reflect the subordination of senior debtholders
to Ping An Life's policyholders, given that the MTN program is junior to the
liabilities of insurance policyholders.
The stable outlook reflects Moody's expectation that Ping An Life will
maintain its leading market position, strong distribution capability, solid
capital adequacy and good profitability without incurring large asset
impairment losses over the next 12-18 months.
PING AN P&C
RATINGS RATIONALE
The affirmation of A2 IFSR incorporates (1) the insurer's a1 standalone
credit profile, underpinned by its strong brand and market presence, strong
profitability and risk-based capitalization; and (2) a one-notch downward
Related Entities
adjustment from the standalone credit profile, reflecting Ping An P&C's
Read Next exposure to contagion risk from other non-insurance business and
investments owned by Ping An Group. Potential risks from these
Podcast
businesses and investments could indirectly affect the group's insurance
operations through contagion, as well as more directly if the group's
insurance companies were called upon to support its affiliates in times of
stress.
Ping An P&C is the second-largest property and casualty (P&C) insurer in

China. As a subsidiary of Ping An Group, the insurer has a strong franchise
and market presence in the country with a high market share of 20.0% in
terms of direct premiums written in 2022. Moody's expects the insurer to
continue to benefit from its extensive and diversified distribution channels,
including its solid online capabilities.
The insurer also maintains strong profitability, benefitting from its good
underwriting profitability and investment income. It maintains
underwriting profit during the first three quarters of 2023 with an
underwriting combined ratio of around 99%, despite high guarantee
insurance claims, losses from typhoon and heavy precipitation, and a
rebound in motor claims as traffic activities resume.
Moody's expects the insurer's underwriting profitability to remain stronger

than most of its domestic peers' over the next 12-18 months. Its guarantee
insurance claims are likely to gradually reduce because the delinquency
rates on the insured loan payments are declining as economic activities
slowly recover. Besides, its advanced pricing capabilities and efforts to
optimize expenses via technology deployment will alleviate its pressure on
profitability as China's motor pricing regime further liberalizes, while
pricing competition within the non-motor segment intensifies.
Moody's also expects Ping An P&C's capitalization to remain strong,

underpinned by strong earnings generation. The insurer's comprehensive
solvency ratio was 220.7% as of the end of September 2023, which
contains a large buffer above the regulatory minimum of 100%. Moody's
also expects the insurer to reduce its guarantee insurance exposure over
the next 12-18 months, which will reduce its capital requirements and
overall product risks, if successfully executed.
However, the insurer has a relatively high allocation to equity-type

investments, mainly preference shares and long-term equity investments.
These investments could expose the insurer's earnings and capitalization

RATINGS RATIONALE
to volatility. In particular, the insurer owns a 33% stake in Ping An Real
Estate Company Ltd., of which Moody's views its credit profile is under
stress. Nevertheless, given the relatively small size of this investment
compared to Ping An P&C's large capital bases, the direct adverse credit
Related Entities
impact to the insurer's profitability and capital is limited. Besides, its
Read Next
invested preference shares are mainly in large domestic banks and state-
Podcast owned entities, which offer stable dividend income.
The relatively low interest rate environment in China could also pressure
the insurer's investment income, one of its key sources of income, over the
next 12-18 months.
The stable outlook reflects Moody's expectation that the insurer will
maintain its strong capitalization and achieve profitable underwriting
performance in the next 12-18 months.
PING AN BANK
The affirmation of PAB's ratings reflects the resilience of the bank's

financial fundamentals amid a challenging operating environment in China.
Despite the cyclical pressure from the slower economic growth and
correction in the property market, Moody's expects the bank's asset
quality, capitalization and profitability will remain stable over the next 12-18
months, given its retail franchise and synergy with Ping An Group.
The outlook change to stable from positive is driven by Moody's

expectation that the bank is not likely to sustain the improvement in
profitability and capital due to the pressure on its net interest margin
(NIM) and the difficulty in raising equity capital under current market
conditions and the current financial profile of its majority shareholder, Ping
An Group.
Moody's expects the bank to face pressure to improve its profitability over
the next 12-18 months because of the decline in NIM. Its reported
annualized return on average assets (ROAA) increased slightly to 0.98% in
the first nine months of 2023 from 0.97% in the same period of 2022
because lower credit costs offset the decline in NIM. The bank's NIM in the
first nine months of 2023 declined to 2.47% from 2.77% in the same period
of 2022, and will continue to be strained by declining loan yield in the next
12-18 months. The bank's reported annualized ROAA and Moody's adjusted
net income/tangible assets was 0.94% and 0.85% in H1 2023, respectively.
Moody's expects the bank's recovery of asset growth will contain its
improvement in capitalization in the next 12-18 months. Its common equity
tier 1 capital ratio was 9.23% as of 30 September 2023 and 8.95% as of 30
June 2023, up from 8.64% at the end of 2022. Its tangible common equity
(TCE)/risk-weighted assets (RWA) ratio, based on Moody's calculation,

RATINGS RATIONALE
was 8.63% as of 30 June 2023. The bank's gross loans, total assets and
RWA increased by only 2.9%, 3.7% and 2.6%, respectively, in the first nine
months of 2023 from the end of 2022, mainly because of sluggish retail
loan demand and the bank's de-risking efforts. Moody's expects the bank's
Related Entities
asset growth to pick up in 2024 with the recovery of retail loan demand.
Read Next
Moody's expects the bank to maintain a stable nonperforming loan (NPL)
Podcast
ratio over the next 12-18 months on the back of its efforts to de-risk its
asset mix and its large amounts of NPL write-offs. Its NPL ratio decreased
slightly to 1.04% as of 30 September 2023 from 1.05% at the end of 2022, a
level that was lower than most other Chinese banks'. PAB's provision
coverage ratio was 282.6% as of 30 September 2023, decreasing from
290.3% at the end of 2022.
Moody's assesses that the bank can manage the risk from its exposures to
real estate sector. The NPL ratio of its corporate loans to the real estate
sector was 1.47% as of 30 September 2023, lower than most other Chinese
banks'. As of 30 September 2023, PAB's corporate loans to the real estate
sector amounted to RMB267.2 billion, accounting for 7.8% of its gross
loans.
Like most other joint-stock commercial banks, PAB relies on market funds
more than large state-owned banks, with its market funds accounting for
27.1% of its tangible banking assets (TBA) as of 30 June 2023. The bank
funded 69.4% of its total liabilities through deposits as of 30 September
2023. Out of its deposits, 34% were retail deposits and 66% were
corporate deposits.
Moody's expects the bank to maintain adequate liquid resources over the
next 12-18 months, with its liquid banking assets exceeding its use of
market funds. The bank's liquidity coverage ratio was 101.3% as of 30
September 2023.
PAB's rating is based on China's Moderate + Banking System Macro Profile.

PAB's Adjusted BCA of baa3 incorporates a two-notch uplift based on the
very high level of affiliate support from Ping An Group to PAB. Ping An
Group directly and indirectly owns 58% of PAB. Moody's expects increased
integration of the bank's operations with those of the other Ping An Group
subsidiaries, which will benefit its product offerings and deposit base. As of
30 June 2023, the bank accounted for 48% of Ping An Group's total assets,
37% of its equity and 30% of its net profit.
China does not have an operational resolution regime for banks. Therefore,
Moody's applies a basic Loss Given Failure (LGF) approach in rating
Chinese banks' debt securities. The rating agency's Preliminary Rating

RATINGS RATIONALE
Assessment of PAB's deposits is at the same level as its Adjusted BCA.
PAB's deposit rating of Baa2 incorporates a one-notch uplift based on a

moderate probability of support from the government, reflecting PAB's 1.2%
Related Entities
share of system deposits in China as of 30 June 2023. Government support
Read Next could be channeled either directly to the bank or through the Ping An
Group.
Podcast
The long-term CRRs, before government support, is positioned one notch
above the Adjusted BCA, reflecting our view that the bank's probability of
default on counterparty obligations is lower than those of senior unsecured
debt and deposits in the absence of government support. The CRRs also
benefit from a one-notch of government support uplift, in line with our
support assumptions on deposits.
PAOH
The affirmation of PAOH's Baa2 issuer rating reflects the strong parental
support from and high integration with its parent, Ping An Group; the
company's continued business growth, supported by demand for overseas
asset allocation from Ping An Group and its affiliates; and PAOH's good
brand recognition because of its affiliation with the group.
PAOH remains strategically important to Ping An Group, given that PAOH is

the group's only directly and wholly owned offshore financing and
investment platform. The company manages a substantial portion of Ping
An Group and its affiliates' overseas investments, and provides bridge
funding to its fellow subsidiaries for their offshore investments. As of end-
June 2023, around 63% of PAOH's assets under management (AUM) came
from the group and its affiliates. PAOH's strategic importance is further
strengthened by growing demand for overseas investments from Ping An
affiliates given the higher investment yield compared to that in the
domestic market.
PAOH holds significant stakes in Ping An Group's key operating entities,

including Ping An Financial Leasing (30.56% as of the end of 2022) and
Lufax (16.57% as of the end of 2022), which also underpin the issuer's
strategic importance to the group. In addition, PAOH also holds convertible
promissory notes from Lufax with a carrying value of HKD2.6 billion as of
the end of 2022.
PAOH is a highly integrated subsidiary within Ping An Group and benefits

from strong operating synergies with the group. Its management team and
board are entirely appointed by the group. Ping An Group's top senior
management now comprises PAOH's board.
PAOH's total AUM (commitment) increased to $33.9 billion as of the end of

RATINGS RATIONALE
June 2023 from $24.3 billion as of the end of December 2020. Moody's
expects its AUM growth to moderate in the next 12-18 months amid the
slowing global economic growth but will continue to be supported by
capital calls of its existing investment commitment and strong demand for
Related Entities
overseas investments from Ping An affiliates. The overall moderate
Read Next
business growth will help PAOH to deleverage and reduce liquidity
Podcast pressure.
Despite improving, PAOH's liquidity remains moderate and financial

leverage remains relatively high. The company has been deleveraging since
2020 and optimizing its liability term structure by issuing long-term bonds
and reducing short-term liabilities.
PAOH's profitability is sensitive to capital market volatility and macro-

economic conditions given its exposure to global assets. In H1 2023, the
company's net profit declined to HKD1.38 billion from HKD1.39 billion in H1
2022 mainly because of lower profit received from its investment in
associates. Despite increasing, recurring earnings from its asset
management business remain small in PAOH's earnings composition.
PAOH's senior unsecured debt rating and senior unsecured medium-term

note program rating are Baa2 and (P)Baa2/(P)P-2, respectively, which are
at the same level as PAOH's Baa2 issuer rating, given the notes issued
under the MTN program rank pari passu with all other outstanding senior
unsecured obligations of PAOH.
The rating of the senior unsecured MTN program by Vigorous Champion

International Limited and the rating of the senior unsecured debt issued
under this program are (P)Baa2/(P)P-2 and Baa2, respectively. The ratings
are at the same level as PAOH's Baa2 issuer rating, given that the notes
issued by the program are guaranteed by PAOH, and the guarantee ranks
pari passu with all other outstanding senior unsecured obligations of
PAOH. In addition, the notes issued under this program rank pari passu
with all other outstanding senior unsecured obligations of Vigorous
Champion International Limited.
The outlook remains stable, reflecting Moody's expectation that PAOH will
largely maintain its financial performance and keep its leverage at a
reasonable level over the next 12-18 months. Moody's also expects Ping An
Group to continue to provide capital and noncapital support to PAOH. The
stable outlook also reflects the agency's expectation that Ping An Group
will maintain a good level of earnings and solid capital adequacy at its
insurance and banking subsidiaries over the next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE

RATINGS RATIONALE
RATINGS
PING AN LIFE:
An upgrade of Ping An Life's rating is unlikely unless its exposure to

Related Entities
potential credit problems from the group's non-insurance businesses and
Read Next investments, in the form of contagion or support, is significantly reduced.
Podcast An upgrade of Ping An Life's standalone credit profile is also unlikely

because it is already at the same level as the senior unsecured rating of the
Government of China and Ping An Life's business and invested assets are
predominantly in China.
On the other hand, Moody's could downgrade Ping An Life's rating if (1) the
insurer's capitalization continues to weaken, with its Moody's-adjusted
capital/assets below 4% or its comprehensive solvency ratio below 180%,
both on a sustained basis; (2) its profitability deteriorates sharply, with its
return on capital below 8% on a sustained basis; (3) its asset quality
deteriorates sharply, with a significant rise in impairment losses
detrimental to its profitability and capitalization; (4) its standalone
financial leverage rises above 40% or its earnings coverage drops below
5.0x, both on a sustained basis; or (5) the insurer is called upon to bear
significantly large support burdens from its affiliate companies or
investments.
PING AN P&C
An upgrade of Ping An P&C's rating is unlikely unless its exposure to

potential credit problems from the group's non-insurance businesses and
investments, in the form of contagion or support, meaningfully reduces.
An upgrade of Ping An P&C's standalone credit profile is also unlikely

because it is already at the same level as the senior unsecured rating of the
Government of China, and Ping An P&C's business and invested assets are
predominantly in China.
On the other hand, Moody's could downgrade Ping An P&C's rating if: (1) its
underwriting profitability falls significantly, such that the combined ratio is
above 100% on a sustained basis; (2) its capital adequacy worsens to the
extent that its comprehensive solvency ratio is below 150% on a sustained
basis; (3) its high-risk asset leverage increases above 125% on a sustained
basis; (4) there are potential support burdens related to other affiliate
companies or investments.
PING AN BANK
Moody's could upgrade PAB's ratings on higher level of affiliate support

from Ping An Group, if the bank's business integration with the group's
entities as well as the parent's capacity to provide support strengthen.

RATINGS RATIONALE
Moody's could upgrade the bank's BCA if (1) its capitalization, measured by
TCE/RWA, strengthens to above 9% on a sustained basis; (2) its
profitability, as measured by net income/tangible assets, improves to
Related Entities
above 1.0% on a sustained basis; (3) its asset quality remains stable, with
Read Next its problem loans/gross loans below 1.5% on a sustained basis; and (4) its
liquid banking resources remain above 30% of its TBA.
Podcast
Conversely, Moody's could downgrade the bank's ratings if Ping An Group's
capacity to provide support weakens, or if the bank's strategic importance
to the parent declines.
Moody's could downgrade the bank's BCA if (1) its asset quality and
profitability weaken significantly, with its problem loans/gross loans above
3% and its net income/tangible assets below 0.6%, both on a sustained
basis; (2) its RWA grows rapidly such that its capitalization weakens, with
its TCE/RWA below 7.5% on a sustained basis; or (3) the bank's reliance on
market funding increases, with its market funds/TBA above 40% on a
sustained basis.
PAOH
Because PAOH's rating is closely linked to Ping An Group's credit profile,

Moody's could upgrade its rating if Ping An Group's credit profile improves,
which will be reflected in rating upgrades for Ping An Life, Ping An P&C or
Ping An Bank.
Moody's could downgrade PAOH's issuer rating if: (1) support from or the
company's strategic importance to Ping An Group deteriorates; (2) Ping An
Group's credit profile worsens, which will be reflected in the rating
downgrades for Ping An Life, Ping An P&C or Ping An Bank; (3) it engages in
significantly riskier businesses that strain its capital or liquidity; or (4) it
encounters significant risk management issues or missteps that impair its
franchise and management stability.
PRINCIPAL METHODOLOGIES
The principal methodology used in rating Ping An Life Insurance Company

of China, Ltd. was Life Insurers Methodology published in January 2023 and
available at https://ratings.moodys.com/rmc-documents/397713. The
principal methodology used in rating Ping An P&C Insurance Company of
China, Ltd. was Property and Casualty Insurers Methodology published in
January 2023 and available at https://ratings.moodys.com/rmc-
documents/397707. The principal methodology used in rating Ping An Bank
Co., Ltd was Banks Methodology published in July 2021 and available at
https://ratings.moodys.com/rmc-documents/71997. The principal
methodologies used in rating China Ping An Insurance Overseas (Hldgs)
Ltd. and Vigorous Champion International Limited were Life Insurers

RATINGS RATIONALE
Methodology published in January 2023 and available at
https://ratings.moodys.com/rmc-documents/397713 , Property and
Casualty Insurers Methodology published in January 2023 and available at
https://ratings.moodys.com/rmc-documents/397707 and Banks
Related Entities
Methodology published in July 2021 and available at
Read Next
https://ratings.moodys.com/rmc-documents/71997. Alternatively, please
Podcast see the Rating Methodologies page on https://ratings.moodys.com for a

copy of these methodologies.
Ping An Life Insurance Company of China, Ltd. is the life insurance arm of
Ping An Group and China's second-largest life insurer. It offers various
insurance products including traditional life insurance, participating life
insurance, and accident and health insurance products in mainland China.
As of 31 December 2022, the insurer reported total assets of RMB4.2 trillion
and shareholders' equity of RMB335.6 billion.
Ping An P&C Insurance Company of China, Ltd., is the second-largest P&C

insurer in China. The insurer provides various insurance products, including
motor, property, liability, guarantee, and accident and health insurance. As
of 31 December 2022, Ping An P&C reported total assets of RMB513.2 billion
and shareholders' equity of RMB119.8 billion.
Ping An Bank Co., Ltd is a nationally licensed joint-stock bank in China and
reported consolidated total assets of RMB5.5 trillion and shareholders'
equity of RMB465.9 billion as of 30 September 2023.
China Ping An Insurance Overseas (Holdings) Limited is Ping An Insurance

(Group) Company of China, Ltd.'s only directly and wholly owned offshore
investment and financing platform. Through its subsidiaries, it engages in a
wide range of businesses, including general insurance in Hong Kong, asset
and investment management and overseas project investments and others.
As of 31 December 2022, Ping An Overseas reported total assets of
HKD100.2 billion and shareholders' equity of HKD48.3 billion.
The local market analyst for Ping An Life Insurance Company of China,
Ltd.'s, China Ping An Insurance Overseas (Hldgs) Ltd. and Vigorous
Champion International Limited's ratings is Qian Zhu, +86 (21) 2057 4098.
The List of Affected Credit Ratings announced here are a mix of solicited
and unsolicited credit ratings. For additional information, please refer to
Moody's Policy for Designating and Assigning Unsolicited Credit Ratings
available on its website https://ratings.moodys.com . Additionally, the List
of Affected Credit Ratings includes additional disclosures that vary with
regard to some of the ratings. Please click on this link

RATINGS RATIONALE
https://www.moodys.com/researchdocumentcontentpage.aspx?
docid=PBC_1000008573 for the List of Affected Credit Ratings. This list is
an integral part of this Press Release and provides, for each of the credit
ratings covered, Moody's disclosures on the following items:
Related Entities
Read Next • Rating Solicitation
Podcast • Issuer Participation
• Participation: Access to Management
• Participation: Access to Internal Documents
• Endorsement
• Lead Analyst
• Releasing Office
For further specification of Moody's key rating assumptions and sensitivity

analysis, see the sections Methodology Assumptions and Sensitivity to
Assumptions in the disclosure form. Moody's Rating Symbols and
Definitions can be found on https://ratings.moodys.com/rating-definitions.
For ratings issued on a program, series, category/class of debt or security

this announcement provides certain regulatory disclosures in relation to
each rating of a subsequently issued bond or note of the same series,
category/class of debt, security or pursuant to a program for which the
ratings are derived exclusively from existing ratings in accordance with
Moody's rating practices. For ratings issued on a support provider, this
announcement provides certain regulatory disclosures in relation to the
credit rating action on the support provider and in relation to each
particular credit rating action for securities that derive their credit ratings
from the support provider's credit rating. For provisional ratings, this
announcement provides certain regulatory disclosures in relation to the
provisional rating assigned, and in relation to a definitive rating that may be
assigned subsequent to the final issuance of the debt, in each case where
the transaction structure and terms have not changed prior to the
assignment of the definitive rating in a manner that would have affected
the rating. For further information please see the issuer/deal page for the
respective issuer on https://ratings.moodys.com.
For any affected securities or rated entities receiving direct credit support
from the primary entity(ies) of this credit rating action, and whose ratings
may change as a result of this credit rating action, the associated
regulatory disclosures will be those of the guarantor entity. Exceptions to
this approach exist for the following disclosures, if applicable to
jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from

RATINGS RATIONALE
rated entity.
The ratings have been disclosed to the rated entity or its designated
agent(s) and issued with no amendment resulting from that disclosure.
Related Entities
Moody's considers a rated entity or its agent(s) to be participating when it
Read Next
maintains an overall relationship with Moody's. Unless noted in the
Podcast Regulatory Disclosures as a Non-Participating Entity, the rated entities are

participating and the rated entities or their agent(s) generally provide
Moody's with information for the purposes of its ratings process. Please
refer to https://ratings.moodys.com for the Regulatory Disclosures for each
credit rating action, shown on the issuer/deal page, and for Moody's Policy
for Designating Non-Participating Rated Entities, shown on
https://ratings.moodys.com.
Regulatory disclosures contained in this press release apply to the credit

rating and, if applicable, the related rating outlook or rating review.
The Global Scale Credit Rating(s) discussed in this Credit Rating

Announcement was(were) issued by one of Moody's affiliates outside the
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Kelvin Kwok, CFA
AVP-Analyst
Financial Institutions Group
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Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
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88 Queensway
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China (Hong Kong S.A.R.)
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Chen Huang
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24/F One Pacific Place
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Hong Kong
China (Hong Kong S.A.R.)
Related Entities
China Ping An Insurance Overseas (Hldgs) Ltd.
Ping An Bank Co., Ltd
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Ping An Life Insurance Company of China, Ltd.
Ping An P&C Insurance Company of China, Ltd.
Vigorous Champion International Limited
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5 Issuers
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Moody's A Rms Ratings of Ping An Life, Ping An P&C, and POAH Outlook Stable A RM Ratings of Ping An Bank Changes Outlook To Stable From Positive

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Moody's A Rms Ratings of Ping An Life, Ping An P&C, and POAH Outlook Stable A RM Ratings of Ping An Bank Changes Outlook To Stable From Positive

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2023/11/14 11:38 Moody's - credit ratings, research, and data for global capital markets

Moody's affirms ratings of Ping An Life, Ping An P&C, and

Rating Action | 19 min read

In addition, Moody's has affirmed (P)A3 rating of Ping An Life's senior

At the same time, Moody's has affirmed the long-term/short-term

Please click on this link

docid=PBC_1000008573 for the List of Affected Credit Ratings. This list is

Ping An Life maintains a solid market position as China's second-largest life

However, declining investment yields in China's prolonged low interest rate

In addition, the a1 standalone credit profile has always incorporated Ping

Ping An P&C is the second-largest property and casualty (P&C) insurer in

Moody's expects the insurer's underwriting profitability to remain stronger

Moody's also expects Ping An P&C's capitalization to remain strong,

However, the insurer has a relatively high allocation to equity-type

These investments could expose the insurer's earnings and capitalization

Podcast owned entities, which offer stable dividend income.

The affirmation of PAB's ratings reflects the resilience of the bank's

The outlook change to stable from positive is driven by Moody's

(TCE)/risk-weighted assets (RWA) ratio, based on Moody's calculation,

PAB's rating is based on China's Moderate + Banking System Macro Profile.

Chinese banks' debt securities. The rating agency's Preliminary Rating

PAB's deposit rating of Baa2 incorporates a one-notch uplift based on a

PAOH remains strategically important to Ping An Group, given that PAOH is

PAOH holds significant stakes in Ping An Group's key operating entities,

PAOH is a highly integrated subsidiary within Ping An Group and benefits

PAOH's total AUM (commitment) increased to $33.9 billion as of the end of

Despite improving, PAOH's liquidity remains moderate and financial

PAOH's profitability is sensitive to capital market volatility and macro-

PAOH's senior unsecured debt rating and senior unsecured medium-term

The rating of the senior unsecured MTN program by Vigorous Champion

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE

An upgrade of Ping An Life's rating is unlikely unless its exposure to

Podcast An upgrade of Ping An Life's standalone credit profile is also unlikely

An upgrade of Ping An P&C's rating is unlikely unless its exposure to

An upgrade of Ping An P&C's standalone credit profile is also unlikely

Moody's could upgrade PAB's ratings on higher level of affiliate support

entities as well as the parent's capacity to provide support strengthen.

Because PAOH's rating is closely linked to Ping An Group's credit profile,

The principal methodology used in rating Ping An Life Insurance Company

Ltd. and Vigorous Champion International Limited were Life Insurers

Podcast see the Rating Methodologies page on https://ratings.moodys.com for a

Ping An P&C Insurance Company of China, Ltd., is the second-largest P&C

China Ping An Insurance Overseas (Holdings) Limited is Ping An Insurance

regard to some of the ratings. Please click on this link

Read Next • Rating Solicitation

Podcast • Issuer Participation

• Participation: Access to Management

• Participation: Access to Internal Documents

For further specification of Moody's key rating assumptions and sensitivity

For ratings issued on a program, series, category/class of debt or security

jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from

Podcast Regulatory Disclosures as a Non-Participating Entity, the rated entities are

Regulatory disclosures contained in this press release apply to the credit

The Global Scale Credit Rating(s) discussed in this Credit Rating

The below contact information is provided for information purposes only.

Please see https://ratings.moodys.com for any updates on changes to the

Please see the issuer/deal page on https://ratings.moodys.com for

Kelvin Kwok, CFA

Financial Institutions Group

Podcast Hong Kong

China (Hong Kong S.A.R.)

JOURNALISTS : 852 3758 1350

Client Service : 852 3551 3077