AM Best Affirms Ping An Property & Casualty Insurance's A (Excellent) Financial Strength Rating

Strategic Insights -

AM Best, a global credit rating agency, has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a+" (Excellent) of Ping An Property & Casualty Insurance Company of China, Ltd (Ping An P&C). The ratings reflect Ping An P&C's very strong balance sheet strength, strong operating performance, favourable business profile, and appropriate enterprise risk management. Ping An P&C has maintained steady growth in its consolidated capital and surplus (C&S) over the last decade, with a record high of RMB 136.7 billion (USD 18.7 billion) by the end of 2024, a 9.0% increase from the prior year.

Key Takeaways:

  • Ping An P&C's balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), with a record high of RMB 136.7 billion (USD 18.7 billion) by the end of 2024.
  • The company has maintained steady growth in its consolidated capital and surplus (C&S) over the last decade, with a 9.0% increase from the prior year.
  • Ping An P&C's operating performance is assessed as strong, with a consistent double-digit return on equity (ROE) of 11.5% in 2024.
  • The company's favourable business profile is supported by its sizeable insurance portfolio, diversified distribution channels, and geographic span in China, as well as its strong brand recognition.
  • Ping An P&C has been the second-largest property/casualty insurer in China since 2009, maintaining a domestic market share of around 20% over the last decade.

Statistics:

  • Consolidated Capital and Surplus (C&S): RMB 136.7 billion (USD 18.7 billion) by the end of 2024, a 9.0% increase from the prior year.
  • Return on Equity (ROE): 11.5% in 2024.
  • Domestic Market Share: around 20% over the last decade.
  • Property/Casualty Direct Premiums Written: RMB 328.1 billion in 2024.
  • Investment Portfolio: mainly consists of fixed-income assets.

Sources:

  • AM Best. (2024, February 22). Ping An Property & Casualty Insurance Company of China, Ltd. [Credit Rating Release].
  • AM Best. (n.d.). Guide to Best's Credit Ratings.