Nan Shan Life's investment strategy solid across currencies

S&P also expects the insurer to maintain its current investment risk exposure.

Taiwan-based Nan Shan Life is seen to have an equal capacity to meet its obligations in both local and foreign currencies, S&P Global Ratings said.

As of June, about 75% of Nan Shan Life's total investments are in overseas assets, primarily consisting of highly liquid, high-grade fixed-income securities denominated in US dollars.

S&P expects that Nan Shan Life's capital and earnings will remain satisfactory over the next two years, bolstered by moderate premium growth driven by long-term, protection-type products. 

The agency also expects the insurer to maintain its current investment risk exposure through vigilant monitoring and proactive risk management, despite volatile market conditions. S&P anticipates no major changes in Nan Shan Life's investment strategy, though there may be a slight increase in equity holdings.

S&P also noted that Nan Shan Life is expected to remain independent of its two major shareholders, Ruentex and Pou Chen, under Taiwan's stringent regulatory environment for the financial services sector.