AM Best has evaluated the People’s Insurance Company of China (Hong Kong) (PICC HK) and found its balance sheet strength to be solid, complemented by adequate operating performance, a limited business profile, and appropriate enterprise risk management.
This assessment underscores PICC HK’s strategic significance to its parent company, The People’s Insurance Company (Group) of China (PICC Group), as the group’s sole international insurance entity.
As of the end of 2023, PICC HK’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), remained at the highest level. The company’s diverse investment portfolio—including investment-grade bonds, cash, cash equivalents, preference shares, listed equities, and other investments—contributes to its robust liquidity.
The insurer maintains a strong regulatory solvency position under both the traditional Hong Kong Insurance Ordinance and the updated risk-based capital framework.
In 2023, PICC HK returned to profitability, driven by substantial investment income and favorable underwriting results from its inward business.
Although PICC HK has a relatively small footprint in Hong Kong’s domestic market, it has enhanced its inward reinsurance portfolio by increasing its retention ratio and broadening its business sources.
The company’s Macau branch, established in 2022, caters to insurance needs from Portuguese-speaking countries and offers general insurance solutions across mainland China’s Greater Bay Area, Hong Kong, and Macau.
As the exclusive international insurance arm of PICC Group, PICC HK benefits from both implicit and explicit support, including multiple capital injections, the most recent being HK$970 million in December 2020. Additionally, the company gains operational synergies in underwriting, investment management, and risk management.
Related topics:
