A.M. Best Affirms Credit Ratings of China Taiping Insurance (HK) Company Limited

16-Dec-2017 Intellasia | BusinessWire | 12:50 AM Print This Post

HONG KONG–(BUSINESS WIRE)–A.M. Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a” of China
Taiping Insurance (HK) Company Limited
(CTPI[HK]) (Hong Kong). The
outlook of these Credit Ratings (ratings) is stable.

The ratings reflect CTPI[HK]’s balance sheet strength, which A.M. Best
categorizes as very strong, as well as its adequate operating
performance, neutral business profile and appropriate enterprise risk

CTPI[HK] is well-capitalized and has little capital volatility. Its
risk-adjusted capitalization level, as measured by Best’s Capital
Adequacy Ratio (BCAR), remains solid and supportive of its historical
and anticipated business growth. The company maintains a profitable
underwriting book in Hong Kong’s highly competitive non-life insurance
market, though underwriting profits remain thin. Strong investment
income has been the major contributor to net profits over the past five
years. CTPI[HK] has a strong market presence as one of the top five
non-life insurers in Hong Kong, especially in marine, motor and property
lines of business.

These positive rating factors are offset partially by the unfavorable
underwriting results in CTPI[HK]’s motor and employees’ compensation
portfolios, which continue to face pricing pressures amid soft market
conditions. Additional offsetting rating factors include the risks
associated with a large investment allocation to properties and an
investment fund, with the majority of the latter invested to match the
liabilities of a specific personal accident product launched in 2015.

Positive rating actions are unlikely in the near term. Negative rating
actions could occur if underwriting results deteriorate significantly or
if there is a material decline in risk-adjusted capitalization.

Ratings are communicated to rated entities prior to publication.
Unless stated otherwise, the ratings were not amended subsequent to that

This press release relates to Credit Ratings that have been published
on A.M. Best’s website. For all rating information relating to the
release and pertinent disclosures, including details of the office
responsible for issuing each of the individual ratings referenced in
this release, please see A.M. Best’s
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best’s Credit Ratings
. For information on the proper media
use of Best’s Credit Ratings and A.M. Best press releases, please view
for Media – Proper Use of Best’s Credit Ratings and A.M. Best Rating
Action Press Releases

A.M. Best is the world’s oldest and most authoritative insurance
rating and information source. For more information, visit

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its
subsidiaries. ALL RIGHTS RESERVED.


A.M. Best
Eva Zheng, +852-2827-3402

[email protected]
Sharkey, +1 908-439-2200, ext. 5159

Manager, Public Relations
[email protected]
Lee, +852-2827-3413

Director, Analytics
[email protected]
Peavy, +1 908-439-2200, ext. 5644

Director, Public Relations
[email protected]


Category: BusinessWire, PRAsia

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