AM Best Revises Outlooks to Positive for Ping An Health Insurance Company of China, Ltd.
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of
The Credit Ratings (ratings) reflect Ping An Health’s 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 reflect the implicit and explicit support that
The revision of outlooks to positive from stable reflects sustained improvement in Ping An Health’s operating results as it continues to focus on expanding the individual medical insurance business, led by its flagship product, E Sheng Bao (ESB). Amid its vigorous top-line expansion, the company has maintained double-digit return-on-equity ratio over the past five years, which outperforms the average of its domestic peers. Despite the deterioration in ESB’s loss ratio due to heightened market competition, the company has continuously delivered solid underwriting profit with better operating efficiency reflected by a declining operating expense ratio. The impact of market volatility on investment returns has been mitigated with Ping An Health’s higher allocation to fixed-income type assets. The company has demonstrated its superior underwriting ability and has delivered a steady investment income stream to support its bottom line.
Under IFRS 17, Ping An Health’s capital and surplus (C&S) amounted to
Positive rating actions may occur if
Negative rating actions could occur if Ping An Health’s risk-adjusted capitalisation weakens such that it no longer supports the current balance sheet strength assessment, for example, due to higher-than-expected investment risks that materially deviate from the company’s risk appetite.
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
Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240906190821/en/
Senior Financial Analyst
+852 2827 3414
[email protected]
Director, Analytics
+852 2827 3418
[email protected]
Associate Director, Public Relations
+1 908 882 2310
[email protected]
Senior Public Relations Specialist
+1 908 882 2318
[email protected]
Source: AM Best
AM Best Affirms Credit Ratings of DB Insurance Co., Ltd.
AM Best Affirms Credit Ratings of Tokio Marine & Nichido Fire Insurance Co., Ltd. and Its Subsidiaries
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News