South China Insurance maintained stability, robust capital in 2024

Its adjusted capital and surplus rose by 23% to $277m.

Taiwan-based South China Insurance will maintain its robust financial position and operational stability in the near to medium term, AM Best said.

The insurer has proven to have a strong balance sheet, underpinned by its risk-adjusted capitalisation at the strongest level, as measured by AM Best’s Capital Adequacy Ratio (BCAR) at the end of 2023. 

The company’s adjusted capital and surplus rose by 23% to $277m (TW$8,458m) during the year, driven by a recovery in unrealised capital losses, net profit retention, and prudent reserve provisioning for non-compulsory auto liability insurance. 

This upward trend continued in the first nine months of 2024, further strengthening the balance sheet.  

AM Best expects South China Insurance’s capital adequacy and balance sheet strength to remain supportive of its current ratings, citing its diversified and liquid investment portfolio, dominated by investment-grade bonds and cash. 

South China Insurance reported a net profit after tax of $27.69m (TW$916m) in 2023, benefiting from improved underwriting and investment results, and $36m (TW$1.18b) in profit for the first three quarters of 2024. 

Growth in gross premiums, particularly from motor and commercial fire products, coupled with declining loss ratios in major business lines, contributed to stronger underwriting results in 2023. 

Investment income from interest and dividends further supported earnings. 

($1.00 = TW$33.09)