Last year, PICC HK, the overseas arm of the People’s Insurance Company of China (PICC Group), achieved a return to profitability.
AM Best evaluated PICC HK’s balance sheet strength as solid, citing adequate operating performance, a limited business profile, and appropriate enterprise risk management. These factors underline its strategic importance to PICC Group as its sole overseas insurance entity.
PICC HK’s risk-adjusted capitalisation, assessed by Best’s Capital Adequacy Ratio (BCAR), remained at the strongest level by the end of 2023. The company’s investment portfolio, diversified across investment-grade bonds, cash, cash equivalents, preference shares, listed equities, and other investments, supports robust liquidity.
The insurer maintains a strong regulatory solvency position under both the legacy Hong Kong Insurance Ordinance and the new risk-based capital regime.
In 2023, PICC HK’s return to profitability was driven by robust investment income and positive underwriting results from its inward business. Despite its modest presence in Hong Kong’s domestic market, the company has expanded its inward reinsurance portfolio, achieving a higher retention ratio and diversifying its business sources.
Established in 2022, PICC HK’s Macau branch caters to insurance demand from Portuguese-speaking countries and provides general insurance solutions across mainland China’s Greater Bay Area, Hong Kong, and Macau.
As PICC Group’s sole overseas insurance entity, PICC HK benefits from both implicit and explicit support, including several capital injections, the most recent being HK$970 million in December 2020. The company also leverages operational synergies in underwriting, investment management, and risk management.
