China’s largest P&C insurer gets Moody’s upgrade

June 25 2015 by InsuranceAsia News Staff

The People’s Insurance Company of China Property and Casualty Co Ltd (PICC P&C), the largest property and casualty insurer in the country, has received an upgrade of its insurance financial strength rating (IFSR) from Moody’s Investors Service.

Moody’s has upgraded the IFSR of PICC P&C to Aa3 from A1, with stable outlook.

The insurer is 69% owned by the People’s Insurance Company (Group) of China Limited, which in turn is 70.47% owned by the Ministry of Finance.

Moody’s vice-president and senior credit officer Sally Yim said PICC P&C’s capitalisation and profitability have improved significantly in the past two years.

The company is also expected to receive a strong level of government support in the event of stress, thus the final Aa3 rating.

Moody’s also cited the insurer’s local solvency margin ration, which increased to 239% at the end of last year from 180% a year earlier.

Moody’s, however, stressed that the possibility of a further upgrade is remote considering that PICC P&C’s rating is already at the same level as China’s sovereign rating.

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