AM Best Affirms Credit Ratings of Ping An Property & Casualty Insurance Company of China, Ltd

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 Ping An Property & Casualty Insurance Company of China, Ltd (Ping An P&C) (China). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Ping An P&C’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.

Ping An P&C’s risk-adjusted capitalisation, including equity credit for hybrid securities, remained at the strongest level at year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). The company has achieved solid growth historically in its consolidated capital and surplus (C&S). In 2025, the company’s C&S increased by 7.0%, reaching RMB 146.2 billion (USD 20.9 billion per AM Best calculation) by year-end. Its investment portfolio is liquid and diversified with a largely consistent asset composition, mainly composed of fixed-income securities. Other supporting factors include good financial flexibility with a track record of domestic debt funding in capital markets and a healthy regulatory solvency ratio. As of year-end 2025, based on AM Best calculation, the company’s adjusted financial leverage is 6.0%, which includes credit for capital supplementary bonds, while interest coverage ratio is considered strong. Looking forward, AM Best expects Ping An P&C’s capital position to remain supportive of its continued growth in underwriting and asset risks over the short to intermediate term.

In 2025, Ping An P&C continued to deliver a double-digit return on equity at 10.3% per AM Best calculation; its top line growth recovered during the year to the mid-single digit level, outpacing premium growth in its domestic property/casualty (P/C) industry. The company’s strong operating performance is supported by its better-than-industry underwriting experience and steady investment performance. The motor lines business remains an essential revenue and profit source for Ping An P&C’s insurance book. Leveraging its superior underwriting know-how and granular operating model, the company managed to deliver underwriting profit in 2025 for its new-energy vehicle portfolio. The company continued delivering an investment yield in the mid-single-digit range, through stable income from its investments, interest and dividends, as well as realised and unrealised investment gains.

Ping An P&C’s favourable business profile is supported by its sizeable insurance portfolio, diversified distribution channels and geographic span in China, as well as its strong brand recognition. Ping An P&C remains the second-largest P/C insurer in China with a domestic market share of approximately 20% over the past decade, based on direct premiums written. In 2025, the company’s insurance service revenue (IR) reached RMB 338.9 billion (USD 48.4 billion). The company has built strong brand recognition in its domestic market for its ability to service motor insurance policies, with this premium compromising slightly below 70% of its IR in the past three years. It has been expanding into non-motor lines such as health and accidental insurance as a second growth engine, in addition to agriculture insurance, and more recently, Chinese Interest Abroad-related risks. The company also is renowned for its devotion to innovation, which has enhanced its operating efficiency and risk management.

Ping An P&C is well-positioned at its current ratings level. Positive rating actions could occur if the company broadens its footprint in the global market, while maintaining its current balance sheet strength assessment and solid operating performance. Positive action also could occur if the company enhances its balance sheet strength in a sustainable manner. Negative rating actions could result if there is a sustained deteriorating trend in Ping An P&C’s underwriting and operating performance. Negative rating actions also could occur if the company’s balance sheet strength weakens significantly, for example, due to materially heightened underwriting leverage or investment exposure to risky assets.

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.