AM Best Affirms China Taiping Singapore’s Excellent Ratings

KUALA LUMPUR, Oct 19 (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 China Taiping Insurance (Singapore) Pte Ltd (CTPIS), with a stable outlook.

CTPIS is a wholly owned subsidiary of China Taiping Insurance Holdings Company Limited, which is ultimately majority-owned by China Taiping Insurance Group Ltd (TPG), a Chinese state-owned financial and insurance group.

These credit ratings (ratings) reflect the company’s balance sheet strength, which AM Best assesses as strong, along with its adequate operating performance, neutral business profile and appropriate enterprise risk management. CTPIS also receives a rating enhancement as a member of the TPG group.

AM Best expects the insurer’s risk-adjusted capitalisation to remain at the strongest level over the intermediate term, as measured by Best’s Capital Adequacy Ratio. It also cited the company’s strong financial flexibility, shown by recent capital injections from the TPG group to support its life insurance operations.

Its investments are mainly cash, deposits and fixed-income securities, with some exposure to equities, while the credit risk from its moderate use of reinsurance is partly mitigated by a well-rated reinsurance panel, according to AM Best in a statement.

The company’s return on equity rose to six per cent in 2025 from 5.8 per cent in 2024, with operating income mainly driven by profitable non-life business and an improving life business. Operating performance remained profitable in the first half of 2026, with interest and dividend income continuing to support overall profitability.

CTPIS is a medium-sized composite insurer with a long-established position in Singapore’s non-life segment and a growing presence in the life segment, which accounted for about half of gross premiums written in 2025. AM Best described the underwriting portfolio as well-diversified, although geographically concentrated in Singapore.

Its affiliation with TPG gives the company a level of preferential access to insurance risks linked to China-based enterprises operating in Singapore.

AM Best said the rating enhancement reflects both implicit and explicit support from the TPG group. Although CTPIS accounts for a small portion of the group’s consolidated revenue and earnings, it is considered strategically important for accessing the Singapore insurance market and growing the group’s overseas business.

-- BERNAMA