Global rating agency AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a+” (Excellent) to Ping An Property & Casualty Insurance Company of China, Ltd., (Ping An P&C).
Best has confirmed that the outlook assigned to these ratings is stable.
According to the announcement, the ratings reflect Ping An P&C’s balance sheet strength, which Best assesses as being very strong, as well as the firms strong operating performance, favourable business profile and appropriate enterprise risk management.
Moreover, Ping An P&C’s balance sheet strength is supported by its risk-adjusted capitalisation assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).
The firms consolidated capital and surplus (C&S) increased 12.4% from 2017 to 2021. The increase was heavily supported by profitable underwriting experience and investment income, resulting in C&S of RMB114.35 billion ($17.95 billion) as at year-end 2021.
Additionally, Ping An P&C has also issued capital supplementary bonds in its domestic market, strengthening its regulatory solvency position and providing additional financial flexibility, while at the same time, maintaining a low financial leverage ratio.
Elsewhere, Ping An P&C’s investment portfolio remains sizeable, diversified and overall liquid, with investment assets that amounted to RMB352 billion as of year-end 2021.
Further, Ping An P&C’s favourable business profile is underpinned by its brand recognition and sizeable business portfolio, diversified by distribution channels and geography.
The firm also maintains a leading market share in the majority of product lines it underwrites, with motor remaining the largest line, accounting for roughly 70% of the overall gross premium written.
While the company’s underwriting portfolio mix has remained largely stable throughout the past five years, Ping An P&C continues to adjust its product strategies to meet changing customer needs and macroeconomic trends.
Ping An P&C recently launched its very first ocean carbon sink index insurance policy in the city of Dalian, for marine ecosystem.
