KUALA LUMPUR, March 24 (Bernama) -- Global credit rating agency, AM Best has affirmed Hong Kong’s Sun Hung Kai Properties Insurance Limited (SHKPI) financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent), with a stable outlook.
In a statement, AM Best said the credit ratings (ratings) reflected SHKPI’s balance sheet strength, which was assessed as very strong, as well as its robust operating performance, neutral business profile and appropriate enterprise risk management.
SHKPI’s solid balance sheet is underpinned by its risk-adjusted capitalisation, which reached its peak in the fiscal year ending June 30, 2024 (FY2024), as measured by Best’s Capital Adequacy Ratio.
The company has increased its investments in cash and cash equivalents and has enhanced the quality of its bond portfolio, following efforts to de-risk the majority of its bond exposure to China’s real estate sector.
AM Best considers SHKPI's capital level sufficient to absorb any investment risks, further supported by strong liquidity, a healthy solvency ratio, and a well-structured reinsurance programme.
The company has shown consistent strong operating performance, primarily due to superior underwriting profitability compared to industry peers.
In FY2024, its double-digit return-on-equity ratio was a combined result of favourable underwriting experience and enhanced investment performance. Amid a higher interest rate environment, SHKPI's investment returns further improved, and it continues to maintain low acquisition costs, benefitting from its affiliation with Sun Hung Kai Properties Limited (SHKP).
As a wholly owned subsidiary of SHKP, one of Hong Kong’s largest property developers, SHKPI focuses on commercial and employees' compensation insurance. The company remains profitable despite holding a modest share of Hong Kong’s general insurance market, largely thanks to its group-related businesses.
-- BERNAMA
BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.
Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial
