AM Best Affirms Excellent Credit Ratings Of China’s Qianhai Reinsurance

KUALA LUMPUR, Dec 12 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of China’s Qianhai Reinsurance Co Ltd (QHR).

The outlook of these credit ratings (ratings) is stable, reflecting the company’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.

According to Best’s Capital Adequacy Ratio, QHR’s risk-adjusted capitalisation remained at the strongest level at year-end 2024, and its capital and surplus recorded single-digit growth rates in 2024 and during the first three quarters of 2025, reaching 3.97 billion Chinese yuan (US$543 million) as of Sept 30. (US$1=RM4.10)

AM Best in a statement said QHR has a diversified investment portfolio that is focused on cash and fixed-income securities, albeit with a moderate exposure to debt-type alternative investments. It has been profitable in each financial year since 2019, with a five-year average return-on-equity ratio of 4.9 per cent (2020 to 2024).

The company reported a net profit of 161 million Chinese yuan in 2024 due to capital market performance and investment valuations, which led to a growth in investment income, and remained profitable during the first nine months of 2025.

The credit rating agency expects that QHR’s net retained loss from the recent major fire at Wang Fuk Court, a residential complex in Hong Kong’s northern district of Tai Po, will be manageable for the company, supporting the adequate operating performance assessment.

The life reinsurance segment remains a major driver of QHR’s underwriting performance, which accounts for approximately three-quarters of total gross premium written, but business scale has declined since 2023 due to the downsizing of the financial reinsurance business.

QHR is a composite reinsurer controlled by three Chinese state-owned enterprises and plays a strategic role in the development of the Qianhai Free Trade Zone. Over the past few years, it has continued to strengthen its market presence while maintaining a profit-driven underwriting strategy.

-- BERNAMA