AM Best Affirms Credit Ratings of Ping An Health Insurance Company of China, Ltd.

HONG KONG--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Ping An Health Insurance Company of China, Ltd. (Ping An Health) (China). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Ping An Health’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect the implicit and explicit support that Ping An Health receives from its two major shareholders, Ping An Insurance (Group) Company of China, Ltd. (Ping An Group) and Discovery Limited, with respect to capital and financial support, business development, as well as investment and risk management.

Ping An Health’s risk-adjusted capitalisation remained at the strongest level at year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). The company maintained solid growth in its consolidated capital and surplus (C&S) over the last three years through partial profit retention. In 2025, its C&S increased by 15.9% to RMB 11.9 billion (USD 1.7 billion). Other supporting factors include its diversified and overall liquid invested assets, healthy regulatory solvency position and appropriate reinsurance arrangements.

Ping An Health maintained strong operating performance in 2025, delivering a return-on-equity (ROE) of over 20%. The company’s bottom-line is supported by strong underwriting results and robust investment income. Amid a competitive domestic health insurance market and ongoing national medical reform, the company managed to control its underwriting portfolio quality and decrease its operating expense ratio to achieve underwriting profit margins. Ping An Health’s flagship individual health insurance product, E Sheng Bao (ESB), remains the major contributor to its underwriting profit. Going forward, in addition to ESB, the company expects its individual non-ESB health insurance products to be a second underwriting profit pillar.

Ping An Health is the second-largest specialised health insurer in mainland China, with a market share of 2.0% in 2025, in terms of direct premium written in domestic health insurance. In addition to its Ping An Group affiliates’ networks, Ping An Health has gradually developed its own online and offline distributional channels over the years. To increase its market competitiveness, the company continues to offer more value-added services to its customers. In 2025, Ping An Health upgraded its mobile application to a one-stop service platform, which integrates insurance policy management, health management, medical services and incentive rewards.

Negative rating actions could occur if Ping An Health’s risk-adjusted capitalisation weakens to the level 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. Negative rating actions also could occur if Ping An Health exhibits a significant deterioration in its operating performance, such as having an ongoing underwriting loss from its concentrated individual health product or major reserve strengthening from long-term health products. Albeit unlikely over the short to intermediate term, positive rating actions could occur if the company continues to improve its balance sheet strength fundamentals from self-sustaining internal capital generation through positive operating performance.

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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