AM Best has affirmed the financial strength rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” (Excellent) for Taiping Reinsurance Company (TPRe), based in Hong Kong, and its wholly owned subsidiary, Taiping Reinsurance (China) Company (TPRe China). The outlook for these ratings remains stable.
According to AM Best, TPRe’s ratings reflect a balance sheet strength assessed as very strong, along with adequate operating performance, a neutral business profile, and appropriate enterprise risk management.
The agency also noted the ongoing support from TPRe’s parent, China Taiping Insurance Holdings Company Limited (CTIH), which includes capital, investment, risk oversight, and shared operational resources.
At the end of 2024, TPRe’s risk-adjusted capitalization was at the strongest level. The company has shown financial flexibility by accessing both traditional and alternative capital sources.
On Dec. 31, 2024, TPRe sponsored Asia’s first dual-peril, dual-trigger catastrophe bond, which the company said enhanced its catastrophe risk management. The three-year bond, valued at US$35 million, covers earthquake risk in China and hurricane risk in the United States, and was oversubscribed by institutional investors.
In addition to the ratings affirmation, TPRe reported HK$8.6 billion in insurance revenue for 2024, alongside a profit after tax of HK$957 million. The company’s non-life insurance service results improved moderately, with a combined ratio of 92.7%, as calculated by AM Best.
Life insurance service results continued to make a limited contribution to earnings. Investment performance remained stable, supported by interest income from fixed-income investments. Net impairment losses on financial assets narrowed in 2024, but still affected investment results.
Earlier this year, TPRe received an A rating from both Fitch and S&P for the 16th and 13th consecutive years, respectively.
TPRe has also established a presence across the Greater China region, leveraging CTIH’s brand recognition, and holds a leading position in the non-life reinsurance market in Hong Kong and Macau. The company continues to diversify its business profile in mature markets and is enhancing its underwriting capabilities in specialty lines.
What are your thoughts on this story? Please feel free to share your comments below.
