KUALA LUMPUR, Jan 26 (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 Hong Leong Insurance (Asia) Limited (HLIA), maintaining a stable outlook.
In a statement, AM Best said these credit ratings (ratings) reflected HLIA’s balance sheet strength and its strong operating performance, balanced by a limited business profile and appropriate enterprise risk management.
HLIA’s balance sheet strength is considered very strong, anchored by its risk-adjusted capitalisation at the strongest level as of fiscal year-end June 30, 2025 (FY 2025), as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s capital and surplus (C&S) has grown organically, supported by strong underwriting results and favourable investment income.
Offsetting factors to the balance sheet assessment include the company's modest C&S level, its relatively high dependency on reinsurance, and an investment concentration in real estate properties.
AM Best assesses HLIA’s operating performance as strong, driven historically by better-than-average underwriting profitability. Top-line growth in FY 2025 was propelled by a recovery in property damage and general liabilities insurance, alongside robust investment results from favourable fair value gains on equity investments.
Going forward, HLIA is expected to benefit from improved operational efficiency with a more stable expense ratio and a diversified investment portfolio shifting toward fixed-income-type investments.
The company’s business profile is assessed as limited, reflecting a modest market share in Hong Kong’s general insurance sector. The portfolio is primarily focused on personal lines, such as domestic helper and travel insurance, but is expanding into commercial lines through the broker channel and by targeting small-to-medium-sized businesses.
-- BERNAMA
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