AM Best raised the financial strength rating of the People’s Insurance Company of China (Hong Kong) Limited (PCC Hong Kong) from A- (Excellent) to A (Excellent) and the long-term issuer credit rating from “a-” (Excellent) to “a” (Excellent), citing the company’s continued improvement in business scale, increasing market position and significant development in the quality of its reinsurance business.
Meanwhile, AM Best revised the outlook on the above ratings to stable from positive.
The rating agency said the upgrade reflects PICC HK’s balance sheet strength, which AM Best assesses as very strong, as well as PICC HK’s good operating performance, neutral business profile and appropriate enterprise risk management.
AM Best also highlighted the strategic importance of PICC Hong Kong to parent company PICC Group, as well as the continued improvement in business scale, market position and quality of incoming reinsurance business.
The rating agency continued, “PICC Hong Kong’s risk-adjusted capital size, as measured by the Best Capital Adequacy Ratio (BCAR), remained at the highest level at the end of 2025.
“The company’s investment portfolio remains diversified with a focus on investment-grade bonds, cash and cash equivalents, and equities. It also maintains a healthy regulatory solvency position and strong liquidity levels.
“PICC Hong Kong’s operating results remain good. Its positive earnings were largely supported by investment income, while underwriting results were close to breakeven.”
According to statistics from the Hong Kong Insurance Authority, in 2025, PICC Hong Kong ranked eighth among major non-life insurance companies in Hong Kong, with a market share of 3.8% in terms of onshore and offshore gross premiums (GPW).
AM Best noted that PICC Hong Kong has achieved double-digit revenue growth since 2025 by strategically seizing the huge China Overseas Interests (CIA) opportunity through its subsidiary PICC P&C.
The rating agency added: “Going forward, the company plans to continue to expand its inflow reinsurance portfolio with an increasing focus on the CIA business. AM Best expects PICC Hong Kong to execute its business plan prudently while maintaining its underwriting discipline.”
