Dah Sing Insurance strengthens capital structure

Its 2023 net profit was $13.9m.

Dah Sing Insurance (DSI) is slated to implement robust investment selection and diversification strategies, along with appropriate investment controls to temper high investment risk exposure, said AM Best.

DSI’s balance sheet, which AM Best classifies as very strong, is supported by adequate operating performance, a limited business profile, and appropriate enterprise risk management. 

At the end of 2023, DSI’s risk-adjusted capitalisation remained at the strongest level according to Best’s Capital Adequacy Ratio (BCAR). 

The company's capital and surplus increased by 18% to $305.4m (HK$2,373m), primarily driven by profit retention and a recovery in the valuation of equity investments. DSI’s moderately high but well-diversified equity investment portfolio remains a key component of its financial profile. 

Furthermore, the company strengthened its capital structure by converting $70.8m (HK$550m) in redeemable preference shares into permanent capital in January 2024, further underscoring DSFH’s support.

DSI recorded a net profit of $13.9m (HK$108m) in 2023, bolstered by improved investment returns and better underwriting performance, particularly in property damage and motor insurance. 

Gross premiums written (GPW) reached $108.6m (HK$844m), with DSI holding a market share of around 1.2% in Hong Kong’s non-life insurance sector. 

DSI is shifting its underwriting portfolio by expanding property damage coverage whilst reducing exposure to offshore catastrophe risks. The majority of its premiums were sourced from corporate intermediaries, with bancassurance support from Dah Sing Bank.

($1.00 = HK$7.77)