Market Overview

A.M. Best Affirms Credit Ratings of Ping An Health Insurance Company of China, Ltd.


A.M. Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of "a-" of Ping An
Health Insurance Company of China, Ltd. (Ping An Health) (China).
The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Ping An Health's balance sheet strength, which A.M.
Best categorizes as very strong, as well as its marginal operating
performance, neutral business profile and appropriate enterprise risk
management. The ratings also reflect the wide range of support the
company receives from its two major shareholders, Ping An Insurance
(Group) Company of China, Ltd. and Discovery Limited, in terms of
financial flexibility, distribution channels and operations.

The capitalization of Ping An Health was strengthened in 2017 through
two rounds of capital injection totaling CNY 850 million (approximately
USD 128 million) from its shareholders. Furthermore, the company
recorded its first net profit since launching, which can be attributed
to the implementation of a new business plan that aims to transform the
company's product focus from group health to individual health
gradually. A.M. Best expects the company will be able to successfully
deliver the individual health-focused business plan and deliver the
planned favorable results for the key individual product.

Offsetting rating factors include historical weak operating performance
due to intense competition in the group health market and the execution
risk of its new business plan, as well as the product concentration risk.

Positive rating actions could occur if Ping An Health can demonstrate
continuous favorable operating results. Negative rating actions could
occur if Ping An Health's risk-adjusted capitalization weakens
significantly, or if the company's results materially deviate from its
business plan. Negative rating actions also could occur if Ping An
Insurance (Group) Company of China, Ltd. reduces the level of support to
Ping An Health.

Ratings are communicated to rated entities prior to publication.
Unless stated otherwise, the ratings were not amended subsequent to that

This press release relates to Credit Ratings that have been published
on A.M. Best's website. For all rating information relating to the
release and pertinent disclosures, including details of the office
responsible for issuing each of the individual ratings referenced in
this release, please see A.M. Best's
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
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