AM Best Affirms Credit Ratings of Taiping Reinsurance Company Limited and Its Subsidiary
HONG KONG, October 15, 2026--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.