AM Best affirms China Taiping Insurance’s ratings

December 21 2015 by InsuranceAsia News Staff

AM Best has affirmed China Taiping Insurance (HK) Co Ltd’s financial strength rating of A and issuer credit rating of “a”, with stable outlook.

In a statement, AM Best said the ratings reflect the Chinese insurer’s excellent risk-adjusted capitalisation, strong market presence in Hong Kong’s non-life insurance market, as well as its consistent operating profits over the past five years.

AM Best, however, noted that the rating factors of China Taiping Insurance have been offset by the unfavourable or volatile underwriting results in Hong Kong’s motor and employees’ compensation.

The profit margins of the two major portfolios of China Taiping Insurance are expected to continue to be under pressure due to soft prices and a competitive environment in Hong Kong.

The ratings agency though said that the insurer has maintained its strong local market presence and a recognized brand in the Hong Kong non-life insurance market.

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