AM Best Upgrades Credit Ratings of The People’s Insurance Company of China (Hong Kong), Limited

HONG KONG--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) of The People’s Insurance Company of China (Hong Kong), Limited (PICC HK) (Hong Kong). Concurrently, AM Best has revised the outlook of these Credit Ratings (ratings) to stable from positive.

The ratings reflect PICC HK’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 strategic importance of the company to its parent, The People’s Insurance Company (Group) of China Limited (PICC Group) (China).

The rating upgrades reflect sustained improvement in PICC HK’s business scale, evidenced by its enhanced market position and significant quality development in the inward reinsurance business. In 2025, PICC HK ranked 8th amongst primary non-life insurers in Hong Kong, with a market share of 3.8% in terms of onshore and offshore gross premiums written (GPW) according to the Hong Kong Insurance Authority statistics. Over the years, PICC HK has achieved sustained profitable growth in its inward reinsurance portfolio with global geographical diversification. Since 2025, PICC HK has strategically tapped into vast Chinese Interest Abroad (CIA) opportunities by leveraging its affiliated company, PICC Property & Casualty Company Limited (PICC P&C), achieving a double-digit top-line growth. Prospectively, the company plans to continue expanding its inward reinsurance portfolio, with a growing focus on CIA businesses. AM Best expects PICC HK to prudently execute its business plan while maintaining its underwriting discipline.

PICC HK’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), remained at the strongest level at year-end 2025. The company’s investment portfolio remains well-diversified, dominated by investment-grade bonds, cash and cash equivalents and equities. It also maintains a healthy regulatory solvency position and strong liquidity levels. PICC HK’s operating performance remains adequate. Its positive bottom line is largely supported by investment income, while underwriting results are close to breakeven.

As the group’s sole overseas insurance entity, PICC HK continues to be of strategic importance to the PICC Group. PICC HK plays a key role in expanding the group’s overseas strategies, and benefits from its parent’s explicit and implicit support. The company also has benefited from the group’s operational synergies, particularly in the areas of business development, key management personnel and overall risk management.

Positive rating actions could occur if PICC HK demonstrates sustained and favourable results to strengthen its overall operating performance. Negative rating actions could occur if there is a decline in PICC HK’s operating performance to a level that no longer supports AM Best’s adequate operating performance assessment. Although unlikely in the intermediate term, negative rating actions could also occur if the support PICC HK receives from PICC Group weakens notably or the parent's credit fundamentals deteriorate materially.

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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