AM Best Assigns Excellent Ratings To China Ping An Insurance (Hong Kong)
KUALA LUMPUR, July 10 (Bernama) -- Global credit rating agency, AM Best has assigned a financial strength rating of A- (Excellent) and a long-term issuer credit rating of “a-” (Excellent) to China Ping An Insurance (Hong Kong) Company Limited (CPAHK).
The outlook assigned to these credit ratings (ratings) is stable, reflecting CPAHK’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
According to AM Best in a statement, the ratings also reflect the support of its affiliated company, Ping An Property & Casualty Insurance Company of China Ltd (Ping An P&C).
CPAHK is wholly owned by Ping An Insurance (Group) Company of China Ltd (PAG) through China Ping An Insurance Overseas (Holdings) Limited. Ping An P&C is the leading non-life insurance arm of PAG and acts as the head office for CPAHK.
The ratings recognise the strategic importance of CPAHK in Ping An P&C’s international business strategy and Greater Bay Area (GBA) development. CPAHK acts as a vital link for Ping An P&C’s GBA initiatives in Hong Kong/mainland China cross-border insurance.
CPAHK is expected to become an essential component of Ping An P&C’s overseas development plan in its Chinese Interest Abroad (CIA) business, with Ping An P&C providing extensive support to CPAHK in areas including reinsurance, brand recognition, board of directors and senior management, business referrals, underwriting, investment and risk management.
An authorised non-life insurer in Hong Kong, CPAHK’s strong balance sheet is underpinned by its strongest risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio for 2024 and 2025, which is projected to remain at the strongest level over the short to intermediate term.
Other supportive factors include a prudent investment allocation and appropriate reinsurance arrangements. Partially offsetting factors include CPAHK’s modest capital and surplus level, and its relatively high underwriting leverage ratio compared with domestic non-life insurance peers.
CPAHK returned to profitability in 2024 and sustained it in 2025, with a return on equity in the mid-single digits for both years. Its bottom line is supported largely by its stable investment returns, while underwriting margins have improved due to continued efforts in claims management and reinsurance support from Ping An P&C.
-- BERNAMA