AM Best expects CMB Wing Lung Insurance's capital strength to continue

The insurer’s capital and surplus rose to $400m (HK$3.1b) at the end of 2023.

CMB Wing Lung Insurance Company Limited (CMBWLI) will maintain a very strong capital adequacy and solid earnings performance over the near term, forecasts AM Best.

The Hong Kong-based insurer’s capital and surplus rose to $400m (HK$3.1b) at the end of 2023, following a business transfer in late 2022 and a capital injection in mid-2023. 

Based on unaudited results, capital continued to grow in 2024, supported by consistent profitability and partial profit retention. 

The company follows a conservative investment approach, with cash and equivalents as its largest holdings and continued improvements in the credit quality of its bond portfolio.

Operating results have remained stronger than the industry average, with return on equity in the high single digits for both 2023 and 2024. 

AM Best said the insurers’ earnings were supported by profitable underwriting and steady investment income, which improved further in 2024 due to higher interest income.