AM Best Affirms Credit Ratings of China Taiping Insurance (Singapore) Pte. Ltd.

SINGAPORE--(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 (Singapore) Pte. Ltd. (CTPIS) (Singapore). The outlook of these Credit Ratings (ratings) is stable. CTPIS is a wholly owned subsidiary of China Taiping Insurance Holdings Company Limited, which is ultimately majority owned by China Taiping Insurance Group Ltd. (TPG), a China state-owned financial and insurance group.

The ratings reflect CTPIS’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). In addition, CTPIS benefits from rating enhancement as a member of the TPG group.

CTPIS’s balance sheet strength is underpinned by risk-adjusted capitalisation that is expected to remain at the strongest level over the intermediate term, as measured by Best’s Capital Adequacy Ratio (BCAR). Additionally, CTPIS benefits from strong financial flexibility as demonstrated by capital injections provided by the TPG group in recent years to support the development of its life insurance operations. The company’s investment portfolio consists of cash, deposits and fixed-income securities, albeit with some exposure to higher-risk asset classes such as equities. The company has a moderate reinsurance usage to support the underwriting of large limit risks and life insurance products; however, the credit risk is partially mitigated by the company’s utilisation of a well-rated reinsurance panel.

CTPIS’s operating performance is assessed as adequate, supported by profitable non-life operations, taking into account the elevated start-up costs and technical provisions associated with life insurance sales, which commenced in 2018. CTPIS’s operating performance improved in 2024, compared with one year prior, driven by improved insurance service results and robust investment income. As of 30 June 2025, CTPIS has recorded an operating profit, mainly due to favourable investment performance and the underwriting profit generated from its non-life business. Prospectively, AM Best expects CTPIS’s operating performance to remain adequate, supported by a shift toward a more sustainable business model in its life operations and robust underwriting performance in its non-life business. However, market uncertainties may dampen investment results over the medium term.

AM Best assesses CTPIS’s business profile as neutral. The company is a medium-size composite insurer, domiciled in Singapore, with a long-established position within that country’s non-life segment and an increasing position in the life segment. CTPIS maintains a well-diversified underwriting portfolio, with life insurance operations contributing approximately half of gross premium written in 2024, albeit the portfolio is geographically concentrated in Singapore. The company benefits from its affiliation with the TPG group, which provides it a level of preferential access to insured risks associated with China-based enterprises in the Singapore market.

The rating enhancement reflects both the implicit and explicit support CTPIS receives from the TPG group. While CTPIS’s operations account for a small portion of the group’s consolidated revenue and earnings, it is considered strategically important to the group in terms of accessing the Singapore insurance market and growing its overseas business.

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.

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