AM BEST AFFIRMS EXCELLENT RATINGS FOR HONG KONG’S CHINA TAIPING INSURANCE

KUALA LUMPUR, Dec 5 (Bernama) -- Global credit rating agency, AM Best has affirmed Hong Kong’s China Taiping Insurance (HK) Company Limited [CTPI (HK)] financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent), with a stable outlook.

The credit ratings (ratings) reflect CTPI (HK)’s very strong balance sheet, adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

In a statement, AM Best said the ratings also incorporate the rating enhancement from its parent, China Taiping Insurance Holdings Company Limited (CTIH).

CTPI (HK)’s risk-adjusted capitalisation was at the strongest level as of year-end 2024, as measured by Best’s Capital Adequacy Ratio, and is expected to remain robust over the short to intermediate term, despite the financial impacts from the recent Wang Fuk Court fire, a residential complex in Hong Kong’s northern district of Tai Po.

AM Best believes the loss should be manageable given the insurer’s prudent reinsurance arrangement with a reinsurer panel of sound credit quality and is equipped with abundant liquidity to support the claim payments.

Operating performance is assessed as adequate, with consistent profitability over the past decade except in 2020 due to a major impairment loss from its private funds. The insurer is expected to cede a significant portion of fire-related claims to reinsurers, limiting net losses, though underwriting results may be pressured in the short term.

CTPI (HK)’s business profile remains neutral, with a 5.1 per cent market share in Hong Kong’s competitive general insurance sector in 2024. The company maintains a diversified portfolio across fire, accident and health, motor and liability lines, and has been shifting toward higher domestic direct premiums.

AM Best recognised CTPI (HK)’s strategic importance within CTIH and China Taiping Insurance Group Ltd (TPG), citing strong integration in capital management, ERM, investment, reinsurance, and operations and expecting continued support in handling the recent fire loss.

-- BERNAMA