AM Best Affirms Credit Ratings of Taiping Reinsurance Company Limited and Its Subsidiary

HONG KONG--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” (Excellent) of Taiping Reinsurance Company Limited (TPRe) (Hong Kong) and its wholly owned subsidiary, Taiping Reinsurance (China) Company Ltd. (TPRe China) (China). The outlook of these Credit Ratings (ratings) is stable.

The ratings of TPRe reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also acknowledge the continued implicit and explicit support given by TPRe’s parent company, China Taiping Insurance Holdings Company Limited (CTIH), in terms of capital, investment, risk oversight and shared operational resources.

TPRe’s balance sheet strength is underpinned by its risk-adjusted capitalisation being comfortably above AM Best’s minimum requirement for the strongest assessment level, as measured by Best’s Capital Adequacy Ratio (BCAR), and includes equity credits assigned for capital securities. AM Best expects the reinsurer’s risk-adjusted capitalisation to remain at the strongest level, supported by enhanced capital management and sustainable organic capital generation through profit accumulation. The reinsurer’s balance sheet strength assessment considers its controlled levels of insurance and investment risks, strong financial flexibility with traditional and alternative capital sources, and consistent retrocession programme. TPRe has maintained low adjusted financial leverage at 6.6% (including equity credits for its capital securities) and strong interest coverage, based on AM Best’s calculations.

TPRe consistently delivered improved operating earnings in 2025, with a return-on-equity ratio of 10.1% under HKFRS 17. The reinsurer’s net profit grew to HKD 1.3 billion, driven by both insurance service results and investment results. The non-life insurance service results have moderately increased with a net combined ratio of 91.0%, as calculated by AM Best. Life insurance service results continued to grow as the reinsurer builds out its protection-type underwriting portfolio. TPRe’s overall investment performance has improved moderately, underpinned by recurring income from fixed-income oriented investments. As of the first half of 2026, TPRe’s operating results have remained stable, with net profits of HKD 839 million.

Leveraging CTIH’s strong brand recognition, TPRe has established a solid presence across the Greater China region and maintains a leading position in the non-life reinsurance market in both Hong Kong and Macau. The company continues to diversify its business profile strategically while enhancing its underwriting capabilities in specialty lines. AM Best expects the parent company to provide timely financial support to TPRe, if needed.

Negative rating actions could occur if there is a sustained deteriorating trend in TPRe’s operating performance such that it no longer supports the current adequate assessment. Negative rating actions also could arise if there is a material deterioration in CTIH’s credit profile or if CTIH reduces its level of support to TPRe. While deemed unlikely over the short to intermediate term, positive rating actions could occur if there is a material improvement in the reinsurer’s balance sheet strength fundamentals, while CTIH’s credit fundamentals also improve.

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 © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Madison Fan
Senior Financial Analyst
+852 2827 3416
madison.fan@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