KUALA LUMPUR, Dec 22 (Bernama) -- Global credit rating agency, AM Best has revised the outlooks to positive from stable and affirmed the financial strength rating of B++ (Good) and a long-term issuer credit rating of “bbb+” (Good) of Hong Kong’s Min Xin Insurance Company Limited (MXIC).
In a statement, AM Best said these credit ratings (ratings) reflected MXIC’s strong balance sheet, adequate operating performance, limited business profile and appropriate enterprise risk management.
The revision of the outlooks is driven by expectations of stronger parental support over the intermediate term, including significant capital injections and profitable business expansions through group-related channels and risks.
MXIC is wholly owned by Min Xin Holdings Limited (MXHL), a Hong Kong–listed holding company, which is majority owned by Fujian Investment & Development Group Co Ltd (FIDG), a Chinese state-owned enterprise and the investment arm of the Fujian provincial government.
The credit rating agency believes MXIC’s parents have sufficient capability to provide the expected explicit and implicit support.
AM Best cited recent escalated capital injections and MXIC’s expansion into group-related business, including a newly established bancassurance partnership with an associated Hong Kong bank, as evidence of this support. The insurer is also exploring inward business opportunities linked to FIDG-related risks in mainland China.
MXIC’s balance sheet strength is underpinned by its strongest-ever risk-adjusted capitalisation level as of year-end 2024, as measured by Best’s Capital Adequacy Ratio, supported by a healthy regulatory solvency position, good liquidity and appropriate reinsurance arrangements.
Operating performance remains adequate, with MXIC recording a net profit of HK$13.8 million in 2024 and a return on equity of 4.2 per cent, mainly driven by stable investment income, while underwriting profitability remains thin due to high expense ratios. (HK$100 = RM52.42)
Established in 1974, MXIC operates across Hong Kong and Macau’s non-life insurance markets, with around 60 per cent of premiums generated from Macau.
-- BERNAMA
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