AM Best Assigns Credit Ratings to China Ping An Insurance (Hong Kong) Company Limited

AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of "a-" (Excellent) to China Ping An Insurance (Hong Kong) Company Limited (CPAHK) (Hong Kong). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect CPAHK's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings also reflect the support of its affiliated company, Ping An Property Casualty Insurance Company of China, Ltd. (Ping An P&C).

CPAHK is wholly owned by Ping An Insurance (Group) Company of China, Ltd. (PAG), through China Ping An Insurance Overseas (Holdings) Limited. Ping An P&C is the leading non-life insurance arm of PAG and acts as the head office for CPAHK.

The ratings recognise the strategic importance of CPAHK in Ping An P&C's international business strategy and Greater Bay Area (GBA) development. CPAHK acts as a vital link for Ping An P&C's GBA initiatives in Hong Kong/mainland China cross-border insurance. Going forward, CPAHK is expected to become an essential component of Ping An P&C's overseas development plan in its Chinese Interest Abroad (CIA) business. Ping An P&C provides extensive explicit and implicit support to CPAHK in the areas of reinsurance, brand recognition, board of director and senior management, business referral, underwriting, investment, and risk management.

CPAHK's strong balance sheet strength is underpinned by its strongest risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), for 2024 and 2025, which is projected to remain at the strongest level over the short to intermediate term. Other supportive factors include a prudent investment allocation and appropriate reinsurance arrangements. Partially offsetting factors include CPAHK's modest capital and surplus level, and its relatively high underwriting leverage ratio compared with domestic non-life insurance peers.

CPAHK returned to profitability in 2024 and sustained it in 2025, with a return on equity in the mid-single digits for both years. The company's bottom line is supported largely by its stable investment returns. The underwriting margin has improved significantly since 2024, owing to the company's continued efforts in controlling claims experience and reinsurance supports from Ping An P&C. Looking forward, CPAHK expects the international business to enhance its top-line growth and bottom-line profitability.

CPAHK is an authorised non-life insurer in Hong Kong. Its insurance portfolio is diversified, covering major lines including motor, property damage, general liability, and employee' compensation. Going forward, in terms of the international business, CPAHK is expected to receive an elevated level of support from Ping An P&C, especially in the form of underwriting know-how, claims handling and reinsurance support.

Negative rating actions could occur if there is a material decline in the level of support CPAHK receives from its affiliated company Ping An P&C. Negative rating actions also could occur if there is a decline in the company's operating performance to a level that no longer supports the adequate operating performance assessment.Negative rating actions could occur if there is a material decline in CPAHK's balance sheet strength to a level that no longer supports the strong assessment.Although unlikely in the short term, positive rating actions could occur if CPAHK demonstrates material and sustained improvement in its balance sheet strength.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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