Taiping Reinsurance financials not affected by LA fires: Fitch Ratings

It also reduced its US business in recent years to limit catastrophe exposure. 

China Taiping Insurance Group Ltd.’s (TPG) capital position remains strong, with its comprehensive solvency ratio at 268% as of mid-2024, slightly down from 270% at the end of 2023, according to Fitch Ratings.

Additionally, TPG’s financial leverage ratio, at 17% as of 2023, is expected to remain stable through 2025.  

Taiping Reinsurance Company (TPRe) strengthened its capital position with a risk-based capital (RBC) ratio of 173% under Hong Kong’s new RBC regime, introduced in July 2024.

Its solvency ratio improved to 302% by mid-2024, up from 277% in 2023. 

Fitch expects TPRe to maintain disciplined investment risk management and effective capital buffers.  

Taiping Life’s new business value rose 84% over the same period, supported by its individual agent and bancassurance channels. 

The group’s return on equity reached 10.3% for the first nine months of 2024, up from 6.0% in 2023, driven by strong investment returns. However, its earnings remain exposed to equity market fluctuations and low interest rates.  

Furthermore, Fitch does not expect the California wildfires in January 2025 to significantly affect TPRe’s results, as it does not participate in the California FAIR Plan. 

The reinsurer has also reduced its US business in recent years to limit catastrophe exposure. 

TPRe’s combined ratio for non-life insurance improved to 97% in the first half of 2024 from 106% a year earlier, with further improvement to 94% by the third quarter.