CTBC Insurance maintains strong capital adequacy

Its pandemic-hit capital position has now returned to pre-COVID levels.

CTBC Insurance Company Limited’s capital adequacy will be maintained over the short to intermediate term, supported by full retention of earnings, AM Best said.

The insurer’s balance sheet is assessed as strong, supported by a robust reinsurance program and risk-adjusted capitalisation at the “strongest” level, as measured by AM Best’s Capital Adequacy Ratio (BCAR).

The company’s capital position, which was heavily impacted by pandemic-related losses in 2022 and 2023, has been restored to pre-pandemic levels following capital injections totalling $630m (TW$20.5b) from its parent, Taiwan Life Insurance Company. 

Operating performance, assessed as marginal, is forecasted to improve. After reporting losses for four consecutive years, the company achieved positive operating results in 2023. 

Going forward, AM Best anticipates profitability will be driven by personal lines of business, refined risk selection, and controlled risk appetite. However, potential volatility remains in commercial lines.

CTBC Insurance holds a 1.1% market share in Taiwan’s competitive non-life insurance sector, ranking 14th in the segment. Its diversified portfolio, led by voluntary motor insurance, has shown faster-than-average premium growth, particularly in major commercial fire and liability products. 

AM Best expects CTBC Insurance to focus on stabilising its financial performance and expanding its market presence whilst maintaining its capital strength and operational discipline.