Fitch Ratings has maintained a stable outlook for China-based Huatai Property & Casualty Insurance Co., Ltd. (Huatai P&C), citing the company’s strong financial performance, solid capital position, and moderate profile. The agency also highlighted the insurer’s effective use of reinsurance to mitigate catastrophe exposure and enhance underwriting capacity.
A key factor contributing to Huatai P&C’s stability is its majority ownership by Chubb Limited, which held an 85.5% stake in Huatai Insurance Group as of February 2025. Fitch expects the synergy between Chubb and Huatai P&C to strengthen over time, providing greater operational integration and potential financial support if necessary.
Huatai P&C’s financial results for the first nine months of 2024 show improvement, with its combined ratio declining to 94.7%, compared to 102.3% in 2023. This positive trend is attributed to a lower expense ratio and a stabilized claims experience. Underwriting results are anticipated to benefit further from Chubb’s disciplined risk management and actuarial support.
However, the insurer’s profitability continues to face exposure to investment volatility, particularly due to its holdings in equity markets and alternative assets. Moving forward, Fitch noted that Huatai P&C’s financial stability will rely on maintaining robust underwriting practices and managing capital effectively.
Related topics
