KUALA LUMPUR, March 25 (Bernama) -- AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of Hong Kong’s Sun Hung Kai Properties Insurance Limited (SHKPI), with a stable outlook.
In a statement, the global credit rating agency said the credit ratings (ratings) reflect SHKPI’s very strong balance sheet, strong operating performance, neutral business profile, and appropriate enterprise risk management.
SHKPI’s balance sheet strength is supported by risk-adjusted capitalisation at the strongest level as of fiscal year-end June 30, 2025 (FY2025), measured by Best’s Capital Adequacy Ratio.
The company has adopted a more prudent investment strategy, reducing exposure to higher-risk assets such as real estate sector bonds and loan securities while focusing on cash and high-grade fixed income instruments.
Strong liquidity, a healthy solvency ratio, and a sound reinsurance programme further support its capital position, although these are partly offset by modest capital size, reliance on reinsurance, and concentration in real estate investments.
The insurer has maintained a track record of strong operating performance over the past decade. In 2025, the return on equity ratio stood at 9.9 per cent, with lower profit driven by reduced underwriting and investment income.
Nonetheless, SHKPI continues to benefit from group-related business with minimal acquisition costs, supporting underwriting results that outperform market averages. Investment performance is expected to stabilise over the medium term, underpinned by steady interest and dividend income.
AM Best assesses SHKPI’s business profile as neutral. SHKPI is a wholly owned subsidiary of Sun Hung Kai Properties Limited, one of Hong Kong’s largest property developers. While SHKPI holds a modest share of the general insurance market, it maintains profitability through strong ties to its parent group, focusing on commercial lines and employees’ compensation insurance.
-- BERNAMA
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