Ratings on Hong Kong-based life insurer AIA have been affirmed under Standard & Poor’s (S&P) new criteria.

The core operating subsidiaries keep their AA- financial strength rating with a stable outlook, while the non-operating holding company, AIA Group, retains its A long-term and A-1 short-term rating.

AIA Australia – now considered a highly strategic subsidiary – maintains its A+ financial strength rating.

“In our opinion [AIA Australia] is becoming a more integral part of AIA Group because of its strong business growth in recent years,” S&P said.

AIA has “an extremely strong competitive position”, the ratings agency says.

“Its excellent brand strength has helped the company to maintain a strong market position in several life insurance markets in Asia.

“We view its geographic diversity positively, because the spread of its premium source tempers exposure to any single market.”