BOCG Insurance's liquidity sufficient for liabilities: AM Best

The company’s 2023 capital and surplus was driven by underwriting and investment income.

Bank of China Group Insurance Company (BOCG Insurance) (Hong Kong) is seen to leverage its connection with Bank of China Group to grow its direct local business and enhance its digital channels, according to AM Best.

AM Best assessed BOCG Insurance’s balance sheet as strong, supported by robust risk-adjusted capitalisation, which remained at the strongest level through 2023. 

The company’s capital and surplus saw organic growth in 2023, driven by solid underwriting results and investment income, maintaining a healthy regulatory solvency position under Hong Kong's Risk-Based Capital Ratio.

Despite a high allocation to illiquid investments in associated companies, BOCG Insurance’s liquidity remains sufficient to meet insurance liabilities, with liquid assets in bonds, cash, and deposits covering the remainder.

BOCG Insurance’s operating performance remains adequate, marked by improved net income and a double-digit return-on-equity ratio in 2023. 

Underwriting profits have been consistent since 2021, supported by gains in motor and general liability lines. BOCG Insurance holds a 3.1% market share in Hong Kong’s non-life sector, ranked seventh in non-life gross premiums written.