Fitch expects Generali to back Hong Kong life unit’s expansion

Given its previous capital injections of HK$735m from 2018 to 2022.

Hong Kong-based Generali Life (Hong Kong) Limited (GLHK) is expected to benefit from its parent company and improve profitability despite its modest market share and operational scale in a competitive landscape, according to Fitch Ratings.

This assessment comes after the parent company, Generali, injected capital worth $735m between 2018 to 2022.

GLHK’s capitalisation remains robust, supported by a conservative investment strategy. 

This marked a slight decrease from 285% in 2022, driven by business expansion and interest rate fluctuations. The company has no financial leverage.  

However, its market share in Hong Kong's life insurance market remains below 1% based on annualised premium equivalent (APE).  

Profitability improved significantly in 2023, with return on equity and return on assets turning positive at 10.2% and 2.5%, respectively, compared to losses in 2022. 

APE increased by 88% in 2023, driven by strong sales of whole-life savings products. Fitch anticipates further steady growth in profitability through business expansion and operational efficiencies.