Excellent Credit Ratings Assigned To China Taiping Insurance (Macau) - AM Best

KUALA LUMPUR, March 21 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of China Taiping Insurance (Macau) Company Limited (CTIM).

The outlook of these credit ratings (ratings) is stable, reflecting CTIM’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

As measured by Best’s Capital Adequacy Ratio, CTIM’s risk-adjusted capitalisation remained at the strongest level as of year-end 2023, while its capital level remained robust and further strengthened to US$120 million at year-end 2024, based on the unaudited financial statements. (US$1=RM4.42)

According to AM Best in a statement, the company’s investment strategy is consistently conservative, with the majority of its assets held in cash and investment-grade bonds.

In addition, CTIM’s reinsurance programme remains comprehensive with reinsurer panels of good credit quality; although, the reinsurance dependency of the company is moderate.

Reported a five-year average return-on-equity ratio (ROE) of 18.4 per cent from 2019 to 2023, CTIM achieved an ROE of 19.8 per cent in 2024, with a historical full-year-recorded net profit.

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Last year, the net combined ratio increased moderately, mainly driven by an uptick in the loss ratio from motor business, while the net expense ratio stayed largely at a similar level as the prior year, thanks to the effective control of management expenses.

CTIM maintains a long track record as the leader in Macau’s non-life insurance segment and has a market share of approximately 33 per cent as of the third quarter 2024, based on gross premiums written, with its underwriting portfolio and distribution channels remaining diversified.

-- BERNAMA