AM Best Affirms Ping An Property and Casualty Insurance's Financial Strength Rating

Strategic Insights -

Ping An Property and Casualty Insurance Company of China Ltd, one of the largest property and casualty insurers in China, has maintained its robust financial foundation and strong operational performance, according to global credit rating agency AM Best. The company's financial strength rating of A (Excellent) and long-term issuer credit rating of 'a+' (Excellent) have been affirmed, with a stable outlook for both ratings. Ping An P and C's strong balance sheet, conservative investment strategy, and sustained operational performance have contributed to its excellent creditworthiness.

Key Takeaways:

  • Ping An P and C's balance sheet is considered very strong, supported by the highest level of risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio.
  • The company's consolidated capital and surplus (C and S) grew by 9% year-over-year to 136.7 billion Chinese yuan ($18.7 billion) by the end of 2024.
  • Ping An P and C has sustained strong returns, with a return on equity (ROE) of 11.5% in 2024, recovering from underperformance in 2022 and 2023.
  • The insurer reported a net profit after tax of 15.0 billion Chinese yuan in 2024.
  • Ping An P and C's motor insurance line continues to be a key revenue driver, accounting for about 70% of total premiums over the past five years.
  • The company has maintained stable underwriting margins thanks to advanced pricing models and operational efficiency, despite the rise in new-energy vehicle (NEV) policies.
  • Ping An P and C holds a strong market position, being the second-largest property/casualty insurer in China since 2009, with around a 20% market share.
  • The company's insurance service revenue hit 328.1 billion Chinese yuan in 2024, with its broad distribution network and technological investments contributing to enhanced risk management and operational performance.

Statistics:

  • Consolidated capital and surplus (C and S): 136.7 billion Chinese yuan ($18.7 billion)
  • Return on equity (ROE): 11.5%
  • Net profit after tax: 15.0 billion Chinese yuan
  • Motor insurance premium share: 70%
  • Market share: 20% (since 2009)
  • Insurance service revenue: 328.1 billion Chinese yuan (2024)

Sources:

  • BERNAMA News Agency
  • AM Best statement