Moody’s eyes Chinese insurers negatively

Moody’s Investors Service said it revised its outlook on several Chinese insurers to negative from stable following a similar action on China’s sovereign.

Among the companies are China Life Insurance Co. Ltd., China Life Insurance (Overseas) Co. Ltd. and PICC Property and Casualty Co. Ltd.

“The change to a negative outlook reflects rising evidence that financial support will be provided by the government and wider public sector to financially-stressed regional and local governments (RLGs) and state-owned enterprises (SOEs), posing broad downside risks to China's fiscal, economic and institutional strength. The outlook change also reflects the increased risks related to structurally and persistently lower medium-term economic growth and the ongoing downsizing of the property sector,” Moody’s said in a press release

Concurrently, Moody’s affirmed all three companies’ ratings.

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