Sun Hung Kai Properties Insurance Limited (SHKPI) is poised to continue its financial stability, driven by a robust balance sheet and solid operational performance, according to AM Best’s latest assessment.
As of the fiscal year ending June 30, 2024, SHKPI’s risk-adjusted capitalisation remains at the strongest level, a key indicator of its financial resilience. The company’s shift toward higher-quality cash and bond holdings has further solidified its financial standing, significantly reducing its exposure to the volatile Chinese real estate sector.
AM Best forecasts that SHKPI’s conservative investment strategy will position the company well to weather potential market fluctuations.
In terms of underwriting profitability, SHKPI continues to outperform industry peers. For the 2024 fiscal year, the company posted a double-digit return on equity, driven by favourable underwriting results and higher investment returns, aided by rising interest rates.
Looking ahead, AM Best anticipates that SHKPI will benefit from continued support from its parent group, which provides a steady stream of premium income and reduces acquisition costs.
Despite holding a modest share of Hong Kong’s general insurance market, SHKPI’s focus on commercial and employees’ compensation insurance, paired with its low-cost business model, has allowed it to maintain stable profitability.
AM Best expects these factors to sustain SHKPI’s strong financial position in the short term, reinforcing its ability to navigate the evolving market landscape.
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