Dah Sing Insurance (DSI) has announced its plans to enhance its investment selection and diversification strategies while implementing rigorous investment controls to mitigate high-risk exposure, according to AM Best.
AM Best rates DSI’s balance sheet as “very strong,” bolstered by satisfactory operating performance, a focused business profile, and effective enterprise risk management. By the end of 2023, DSI’s risk-adjusted capitalization remained at its highest level, as measured by Best’s Capital Adequacy Ratio (BCAR).
The company reported an 18% increase in capital and surplus, reaching $305.4 million (HK$2,373 million), primarily driven by profit retention and a rebound in equity investment valuations. DSI’s moderately high but well-diversified equity investment portfolio continues to be a vital element of its financial stability.
In January 2024, DSI further fortified its capital structure by converting $70.8 million (HK$550 million) in redeemable preference shares into permanent capital, reflecting strong support from Dah Sing Financial Holdings.
For the year 2023, DSI achieved a net profit of $13.9 million (HK$108 million), supported by improved investment returns and enhanced underwriting performance, particularly in property damage and motor insurance sectors. The company’s gross premiums written (GPW) reached $108.6 million (HK$844 million), securing approximately 1.2% of Hong Kong’s non-life insurance market.
DSI is also adjusting its underwriting portfolio by expanding property damage coverage while reducing its exposure to offshore catastrophe risks. The majority of its premiums were obtained through corporate intermediaries, with additional support from bancassurance partnerships with Dah Sing Bank.
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