Nan Shan General Insurance Co., Ltd. has demonstrated robust balance sheet strength, underpinned by improved risk-adjusted capitalization, as measured by AM Best’s Capital Adequacy Ratio for the year-end 2024. The company’s capital position benefited from earnings growth and partial profit retention.
However, AM Best highlighted that Nan Shan General’s relatively high dividend payout ratio may slow the pace of its organic capital growth in the near term.
For 2024, the insurer reported a significant increase in operating results, fueled by stable underwriting and solid investment performance. The company saw a rise in return on equity, with premium growth exceeding the broader market. This growth was particularly driven by strong performance in voluntary motor, travel, and commercial lines.
Although some segments experienced higher premium retention, loss experience remained stable throughout the period.
Looking ahead, Nan Shan General anticipates gradual improvements in underwriting profitability over the next three years, with strong contributions from personal lines and commercial liability business.
On the investment front, the company achieved better returns, largely due to interest income from its bond portfolio, which helped to stabilize its overall performance. AM Best expects Nan Shan General to maintain its focus on domestic fixed-income investments while continuing to manage moderate exposure to equities in order to enhance returns.
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