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AM Best upgrades PICC HK ratings on profitable inward reinsurance growth
AM Best also moved the outlook to stable from positive and cited a Best’s Capital Adequacy Ratio at the strongest level at year end 2025.
AM Best upgraded The People’s Insurance Company of China Limited (Hong Kong), also known as PICC HK, raising its Financial Strength Rating to A (Excellent) from A- (Excellent) and its Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent). At the same time, the rating agency revised the outlook to stable from positive, attributing the change to sustained improvements in the company’s business scale, inward reinsurance market position, and overall quality development.
AM Best said the upgrades reflected PICC HK’s very strong balance sheet strength and adequate operating performance, with a neutral business profile and appropriate enterprise risk management. The agency also highlighted that PICC HK’s risk-adjusted capitalization, measured by Best’s Capital Adequacy Ratio, remained at the strongest level at year end 2025, while the firm’s investment portfolio was well diversified, dominated by investment-grade bonds, cash and cash equivalents, and equities.
On performance, AM Best noted PICC HK’s positive bottom line is largely supported by investment income, while underwriting results are close to breakeven. The rating agency said PICC HK plans to continue expanding its inward reinsurance portfolio, with a growing focus on Chinese Interest Abroad opportunities and an expectation to maintain underwriting discipline.
AM Best added that PICC HK ranked 8th among primary non-life insurers in Hong Kong in 2025, with a 3.8% market share based on onshore and offshore gross premiums written, according to Hong Kong Insurance Authority statistics. The rating action follows the company’s inward reinsurance growth, which the agency linked to strategic support from its affiliated PICC Property & Casualty Company Limited (PICC P&C).