The approval to establish a branch in Guangzhou will allow PALIC
to apply for an operational licence and subsequently a business licence from the Guangzhou State Administration Bureau of Industry and Commerce.
National Insurance Services (NIS) is a wholly-owned subsidiary of PALIC and has been the primary profit generator over the last several years.
PALIC markets these products to the advanced market (professionals, estate planning, and small to medium-sized businesses).
The rating affirmations reflect New Era, PALIC
and NEMW's generally positive net operating gains, their efforts to improve the overall quality of the balance sheets and core business focus, which serve senior markets, as well as pursuing selective acquisitions of blocks of business.
The ratings also recognize the continuing execution of new business initiatives to drive premium diversity within the group through its various affiliates in Latin America, which is not reflected in the reported statutory results of PALIC.
PALIC continues to report favorable capitalization measures, despite recent declines in reported surplus due to dividending of earnings and ownership of certain affiliates to the holding company and the level of future credit risk and impairment in its investment portfolio is viewed as manageable.