Taiping Reinsurance Company (TPRe), based in Hong Kong, has been recognized by AM Best for its robust balance sheet, satisfactory operational performance, neutral business profile, and effective enterprise risk management. The rating agency noted the substantial backing TPRe receives from its parent company, China Taiping Insurance Holdings Company (CTIH), which enhances its capital, investment, and operational capabilities.
As of the end of 2023, TPRe’s risk-adjusted capitalization was rated at the highest level according to AM Best’s Capital Adequacy Ratio (BCAR). The agency anticipates that TPRe’s capitalization will remain strong in the near term, supported by financial flexibility and an improved credit profile within its investment portfolio. However, challenges loom due to exposure to catastrophe risks and legacy investments in unstable markets.
In 2023, TPRe reported a net profit of HK$333 million (approximately $42.74 million), reflecting a 3% return on equity under HKFRS 17. The company’s non-life insurance performance remained stable, particularly in property lines, achieving a combined ratio of 95.9%. Conversely, the life insurance segment exhibited volatility as TPRe transitioned from savings-oriented to protection-focused reinsurance.
Overall, the investment performance was steady, bolstered by interest income from fixed-income assets, although this was somewhat tempered by asset impairments. As a subsidiary of CTIH, TPRe enjoys a strong foothold in Greater China and leads the non-life reinsurance market in Hong Kong and Macau.
The company is also expanding into emerging markets, particularly in Southeast Asia, and has partnered with strategic investor Ageas for product development. AM Best expects CTIH to continue providing financial support to TPRe, as evidenced by previous capital injections.
Exchange Rate: $1.00 = HK$7.79
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