S&P Global Ratings maintained Hong Kong-based BOC Group Life Assurance's A local currency long-term financial strength and issuer credit ratings, with a stable outlook, according to a Thursday release.

The rating action reflects the company's status as a highly strategic subsidiary of a subgroup of BOC Hong Kong (Holdings) (HKG:82388), as it benefits from its parent's brand, distribution network, and support in areas such as capital and liquidity.

S&P said its revised capital model criteria had a negligible impact on the insurer's credit profile and it expects it to retain satisfactory capital adequacy over the next two years.

The insurer will exhibit a narrower capital buffer due to strong new business growth and increased investment risk, but this will be offset by the recognition of contractual service margin and risk adjustments as equity-like reserves under the International Financial Reporting Standards 17.

S&P may lower the ratings if the subgroup's credit profile weakens or if extraordinary support from the parent declines.

Meanwhile, an upgrade is unlikely in the near term but could happen if the company becomes a more significant and integrated part of the subgroup.