AM Best Affirms Credit Ratings of China Taiping Insurance (Macau) Company Limited

Business Wire

HONG KONG--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of China Taiping Insurance (Macau) Company Limited (CTIM) (Macau). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect CTIM’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

CTIM’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), stays at the strongest level. The company has achieved robust capital and surplus growth over the last two years, reaching Macanese pataca (MOP) 1,053 million (USD 132 million) in 2025, based on the unaudited financial statements. Other supportive factors include the company’s conservative investment strategy, which focuses predominantly on cash and investment-grade bonds, and a comprehensive reinsurance programme with sound credit quality reinsurance counterparties. A partial offsetting factor is the company’s moderate reinsurance dependence.

CTIM has demonstrated a history of positive operating results, with a five-year average return-on-equity ratio of 17.8% from 2021 to 2025. The company’s strong bottom line is attributable to its better-than-industry underwriting performance and stable investment income. In 2025, the net combined ratio improved moderately, mainly driven by a decrease in the loss ratio for motor and employees’ compensation insurances. The company has reported stable net investment returns (including gains) at mid-single digit level over the last two years. CTIM’s investment performance is expected to continue to support its overall operating performance through stable streams of interest, dividend and rental incomes in the future.

CTIM maintains a long track record as the leader in Macau’s non-life insurance segment and has a market share of approximately 34% in 2025, based on gross premiums written. CTIM’s underwriting portfolio and distribution channels are diversified, while the company continues to develop its online channel and explore cross-selling with affiliated companies of China Taiping Insurance Group Ltd.

CTIM is well-positioned at its current rating level. Negative rating actions could occur if there is a significant and sustained trend of deterioration in its operating performance. A weakening credit profile of the parent company, China Taiping Insurance Holdings Company Limited (CTIH), also may have a negative impact on CTIM’s ratings. Although unlikely in the near term, positive rating actions could occur under the premise of an enhancement in the credit fundamentals of CTIH, and concurrently, if there is a material and sustained improvement in CTIM’s risk-adjusted capitalisation while the company maintains its strong operating performance.

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.