Fitch puts Nan Shan on negative watch
RATING agency Fitch has placed Taiwanese assurer Nan Shan on a negative watch based on the fact that the company’s deteriorated asset yields had hurt its profitability, as well as downward pressure on capitalization, caused by the heightened burden of negative interst rate spreads – the difference between the returns that Nan Shan has guaranteed to policyholders and the rates that it can obtain in the open market.