AM Best Affirms Credit Ratings of China Reinsurance (Group) Corporation and Its Subsidiaries

HONG KONG--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a+” (Excellent) of China Reinsurance (Group) Corporation (China Re) (China) and its subsidiaries. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies.)

The ratings reflect China Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management. The ratings also reflect the support China Re receives from its ultimate parent, China Investment Corporation, the sovereign wealth fund of the Chinese government.

China Re’s consolidated risk-adjusted capitalisation remained at the strongest level at year-end 2024, as measured by Best’s Capital Adequacy Ratio (BCAR). Under IFRS 17 and IFRS 9 accounting standards, the consolidated capital and surplus increased by 10.3% to RMB 112.7 billion (USD 15.4 billion), supported by favourable operating earnings. Going forward, AM Best expects China Re’s capital position to remain supportive of its continued growth in underwriting and asset risks over the short to intermediate term. The group benefits from good financial flexibility, as demonstrated by good access to funding in the equity and debt capital markets, while its financial leverage remains at the low to moderate level. The investment portfolio mix was largely stable with good liquidity.

The group has been consistently profitable over the past five years, with net profit and return on equity improved favourably in 2024. Better underwriting results from the non-life direct and reinsurance portfolios were attributed partly to the strong growth and profitability in the overseas non-life reinsurance business, mainly driven by Chaucer (the collective franchise comprising China Re International Holdings Limited, Chaucer Insurance Company Designated Activity Company and China Re Australia HoldCo Pty Ltd), while the domestic non-life reinsurance segment continued to deliver a stable yet thin margin. On the other hand, the life reinsurance segment saw subdued growth rates in recent years as the domestic life insurance market has been undergoing profound transformations.

China Re maintains the leading position in its domestic property/casualty (P/C) and life reinsurance markets, as well as being a top ranked company in the country’s primary P/C segment. The group benefits from the successful integration with Chaucer, which continues to be the major driver of overseas P/C reinsurance revenue and earnings and helps strengthen the group’s business footprint in the global reinsurance market. Overall, the group’s business remains well diversified by segments, products and geographies.

The ratings also recognise the strategic role China Re has in supporting the continuous development of China’s insurance and reinsurance industry. There is a high likelihood of government support given China Re’s status as the sole state-owned reinsurance group in the country, through the 11.45% stake owned directly by the Ministry of Finance of the People’s Republic of China (PRC) and the 71.56% stake owned by Central Huijin Investment Ltd., a wholly owned subsidiary of the PRC’s sovereign wealth fund, the China Investment Corporation.

Positive rating actions could occur if China Re demonstrates a major improvement in its balance sheet strength by sustainably strengthening its capital position, without material deterioration in financial leverage and quality of capital. Positive rating actions also could arise if there is a material and sustained improvement in the group’s operating performance to be commensurate with the strong assessment level. Negative rating actions could occur if the company’s consolidated risk-adjusted capitalisation decreases significantly, or its leverage ratio increases substantially. Negative rating actions also could occur if the group exhibits a sustained deteriorating trend in its operating performance, for example, due to adverse macroeconomic or capital market conditions.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed, with stable outlooks, for the following subsidiaries of China Reinsurance (Group) Corporation:

• China Property & Casualty Reinsurance Company Ltd.
• China Life Reinsurance Company Ltd.
• China Continent Property & Casualty Insurance Company Ltd
• China Reinsurance (Hong Kong) Company Limited
• Chaucer Insurance Company Designated Activity Company

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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James Chan
Director, Analytics

+852 2827 3418

james.chan@ambest.com

Christie Lee
Senior Director, Analytics

+852 2827 3413

christie.lee@ambest.com

Christopher Sharkey
Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best