KBFG China seen to keep consistent underwriting performance: AM Best

KBFG China’s operating performance is also expected to remain stable.

KBFG Insurance (China) Co., Ltd.’s (KBFG China) balance sheet strength is expected to remain very strong, supported by risk-adjusted capitalisation at the highest level, as measured by AM Best’s Capital Adequacy Ratio (BCAR). 

Full profit retention has contributed to the steady growth of consolidated capital and surplus, a trend that is projected to continue. 

The company has not paid dividends for the past five years and intends to maintain this approach to support future expansion.  

Despite moderate increases in management expenses due to an ongoing system upgrade, KBFG China’s operating performance is expected to remain stable. 

The company has reported consistent profitability over the past five years, with a five-year average net combined ratio of 84.7%. 

Underwriting performance has benefited from low acquisition costs and positive reinsurance commission income, though periodic unfavorable loss experience remains a factor. Investment returns are anticipated to provide ongoing support to overall results.  

Whilst KBFG China has a defensible niche serving Korean interests abroad, its market share in China’s non-life sector remains below 1%. 

AM Best views the company’s enterprise risk management as appropriate for its risk profile, with no major changes anticipated.