China Taiping Insurance (HK) Company Limited, CTPI(HK), has achieved a notable milestone in its financial standing. Rated “very strong” by AM Best, its balance sheet strength is fortified by risk-adjusted capitalisation and enhanced financial metrics in line with the HKFRS 17 standard. In 2023, capital and surplus witnessed a 2.4% growth, attaining a value of $679 million. Moreover, the company upholds a healthy solvency buffer within Hong Kong’s risk-based capital framework, courtesy of its prudent asset allocation and reliable reinsurance strategies.
The company’s operating performance has exhibited stability. Since 2019, underwriting results have been on an upward trajectory, and in 2023, under the IFRS 17 regime, the combined ratio remained below 100%. Net investment income, chiefly propelled by bonds and investment properties, continues to be a vital contributor to profitability. Last year, the return on equity was recorded at 4.5%. However, it is anticipated that the underwriting margin will stay relatively slender, with investment income remaining the mainstay for maintaining the bottom line.
In recent times, CTPI(HK) has redirected its focus from inward reinsurance to direct business, a trend that AM Best foresees persisting. Its assimilation into China Taiping Insurance Group Ltd.’s Greater Bay Area strategy endows it with strategic significance and parental backing. This support is projected to endure in the foreseeable future, further solidifying CTPI(HK)’s position in the market and potentially opening up new avenues for growth and expansion.
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