AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) of The People’s Insurance Company of China Limited (Hong Kong) (PICC HK) citing sustained improvement in the firm’s business scale, evidenced by its enhanced market position and significant quality development in the inward reinsurance business.
Concurrently, AM Best has revised the outlook of the aforementioned ratings to stable from positive.
According to the rating agency, the upgrades reflect PICC HK’s balance sheet strength, which AM Best assesses as very strong, as well as PICC HK’s adequate operating performance, neutral business profile and appropriate enterprise risk management.
AM Best also highlighted PICC HK’s strategic importance to parent PICC Group, alongside sustained improvements in business scale, market position and the quality of its inward reinsurance business.
The rating agency continued, “PICC HK’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), remained at the strongest level at year-end 2025.
“The company’s investment portfolio remains well-diversified, dominated by investment-grade bonds, cash and cash equivalents and equities. It also maintains a healthy regulatory solvency position and strong liquidity levels.
“PICC HK’s operating performance remains adequate. Its positive bottom line is largely supported by investment income, while underwriting results are close to breakeven.”
In 2025, PICC HK ranked 8th amongst primary non-life insurers in Hong Kong, with a market share of 3.8% in terms of onshore and offshore gross premiums written (GPW) according to the Hong Kong Insurance Authority statistics.
AM Best noted that since 2025, PICC HK has strategically tapped into vast Chinese Interest Abroad (CIA) opportunities by leveraging its affiliated company, PICC Property & Casualty Company Limited (PICC P&C), achieving a double-digit top-line growth.
“Prospectively, the company plans to continue expanding its inward reinsurance portfolio, with a growing focus on CIA businesses. AM Best expects PICC HK to prudently execute its business plan while maintaining its underwriting discipline,” the rating agency added.
