AM Best has affirmed the financial strength rating of A (Excellent) and Long-term issuer credit ratings of "a+" (Excellent) for China Reinsurance (Group) Corporation and its subsidiaries, maintaining a stable outlook on the ratings.
The rating action reflects the Beijing-based group's strong balance sheet position and adequate operating results, coupled with what AM Best characterized as a favorable business profile and appropriate risk management practices.
The company also benefits from financial backing by China Investment Corporation, the country's sovereign wealth fund.
China Re's risk-adjusted capitalization remained at its strongest level at the end of 2024, according to AM Best's Capital Adequacy Ratio measurement. The company's consolidated capital and surplus increased 10.3% to RMB 112.7 billion, equivalent to US$15.4 billion, under IFRS 17 and 9 accounting rules, supported by favorable underwriting earnings.
AM Best projects the capital position will continue supporting the company's expansion in underwriting and asset risks over the near and intermediate term. The group maintains good access to equity and debt capital markets while keeping financial leverage at low to moderate levels.
China Re has remained consistently profitable over the past five years, with net profit and return on equity showing improved results in 2024. Better underwriting performance from non-life direct and reinsurance operations was driven largely by strong growth in its overseas non-life reinsurance business.
The domestic non-life reinsurance segment generated stable yet thin margins during the period. Life reinsurance operations experienced subdued growth as China's domestic life insurance market underwent significant transformations.
However, the Asia-Pacific life insurance sector is positioned for multi-year expansion, with one-third of the world's life insurance premium volume anticipated to originate from the region in 2025, suggesting potential recovery for China Re's life reinsurance division.
China Re maintains a leading position in China's domestic property and casualty and life reinsurance markets, ranking among the top companies in the country's primary P/C segment.
The company's business remains well diversified across segments, products and geographic regions. Supporting this diversification is the underlying strength of China's insurance market, with direct written premiums forecast to increase from CNY 1.7 trillion (US$245.8 billion) in 2025 to CNY 2.2 trillion (US$306.9 billion) by 2029 at a 5.4% compound annual growth rate.
Government entities own substantial stakes in the company, with the Ministry of Finance holding 11.45% and Central Huijin Investment Ltd., a subsidiary of China Investment Corporation, holding 71.56%.
