S&P ups Hang Seng Insurance, Hang Seng General Insurance to AA

22 December 2009 - S&P on Monday lifted to AA from A+ its long-term local-currency insurer financial strength

and counterparty credit ratings on Hong Kong-based Hang Seng Insurance Co Ltd and Hang Seng General Insurance (Hong Kong) Co Ltd.

The upgrade recognises both firms' key role in supporting the bancassurance model of their parent, Hang Seng Bank Ltd (HKG:0011), which is 62% owned by UK's HSBC Holdings Plc (LON:HSBA). Moreover, the two companies are an indispensable part of the wider HSBC group's insurance strategy in Hong Kong.

The "negative" outlooks on both subsidiaries mirror the same outlook on the group and further changes to their ratings will result from rating moves on HSBC.

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