Rating agency AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) of China Reinsurance Company, Hong Kong (China Re).
This comes after China Life Reinsurance Company (China Re Life) provided a capital injection of HKD 2 billion (USD 258 million) earlier this month, in order to support the company’s future business growth and maintain a healthy capitalisation level.
The outlook of the Long-Term ICR has been revised to positive from stable, whilst the outlook of the FSR is stable.
These Credit Rating (rating) actions follow AM Best’s assessment of China Re being a newly added member of the group’s lead rating unit, China Reinsurance Corporation (China Re Group).
China Re is a wholly owned subsidiary of China Re Life, which is wholly owned by China Re Group. The group’s ultimate parent is China Investment Corporation.
The ratings reflect China Re Group’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 China Re’s strategic importance to and integration within China Re Group, as its only overseas life reinsurance subsidiary, in addition to the implicit and explicit support the company receives from its immediate parent, China Re Life, including capital, brand recognition, business development, investment, risk management and operational support.
Going forward, AM Best expects China Re Life will remain committed to provide financial supports in the future to satisfy China Re’s business expansion needs.