AM Best Revises Outlooks to Positive for ZhongAn Online P & C Insurance Co., Ltd.

HONG KONG--(BUSINESS WIRE)--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 ZhongAn Online P & C Insurance Co., Ltd. (ZhongAn) (China).

The Credit Ratings (ratings) reflect ZhongAn’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, favourable business profile and appropriate enterprise risk management.

The positive outlooks reflect the improving trend in ZhongAn’s operating performance. The company returned to profitability in 2023 and beyond. The non-insurance segments, technology and banking, achieved breakeven in 2024 and as of June 2025, respectively. The company is expected to continue delivering profits, supported by positive performance from underwriting and investment, along with improved earnings stability from its non-insurance business.

ZhongAn’s balance sheet strength is assessed at very strong level, underpinned by its strongest risk-adjusted capitalisation level as measured by Best’s Capital Adequacy Ratio (BCAR). Its capital and surplus (C&S) continued growth momentum with full profit retention over the years, reaching RMB 21.6 billion (USD 2.95 billion) at the end of June 2025. Furthermore, ZhongAn’s C&S is expected to grow by over 15% from its new shares issuance in July 2025. Other supporting factors include its diversified and liquid investment portfolios, which are mostly composed of fixed-income type assets and strong financial flexibility as a publicly listed company on the Hong Kong Stock Exchange, with its track record of using debt and equity market funding.

ZhongAn’s business profile is assessed as favorable. AM Best continues to view ZhongAn as a leader in innovation. As the first online-only property/casualty (P&C) insurance company in China, the company has leveraged its technology to issue industrialised digital policies at large scale, focusing on diversified individual lines including accident and health, shipping return, credit and guarantee and motor. Benefiting from its online insurer’s license, which allows ZhongAn to distribute nationally, the company’s domestic market share has increased to 2.0% in terms of direct premiums written and has improved its market position to eighth in China’s P&C sector in 2024. Riding on its innovation capability, ZhongAn also export technology service to China and overseas clients, with clientele from banking, insurance and the securities industries. Its technology export revenue has grown significantly over the last several years. AM Best expects ZhongAn to continue benefiting from its innovative capability and to integrate such capability into its insurance operations.

Positive rating actions could occur if ZhongAn demonstrates its improved operating performance is sustainable. Negative rating actions could occur if there is significant adverse deviation from ZhongAn’s business plan, or if there is a material decline in its risk-adjusted capitalisation due to faster-than-expected growth in underwriting or asset risks. Negative rating actions also may arise if the company’s partnerships with key shareholders weaken to the point that they no longer support a favourable business profile assessment.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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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.

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