CNPC Captive Insurance to upstream 40% of income to parent group

Fitch Ratings said the insurer is forecast to deepen its coverage of insurable risks.

CNPC Captive Insurance is expected to maintain its role as the dedicated insurer for China National Petroleum Corporation (CNPC) over the next two years, with growth driven by further consolidation of group-related insurance and participation in CNPC’s energy transition plans.

Fitch Ratings said the captive insurer is forecast to deepen its coverage of CNPC’s insurable risks, particularly following CNPC’s divestment from Generali China Insurance in 2024. 

As of end-2024, CNPC Captive handled around 60% of the group’s total insurance premiums. 

Future growth will depend on its ability to absorb business previously underwritten externally and to manage insurance needs across both domestic and overseas operations.

However, premium income may come under pressure in 2025 due to rate reductions in property and liability lines and sensitivity to CNPC’s capital spending. 

From 2019 to 2024, CNPC Captive achieved a 10.5% compound annual growth rate in premiums through expanded coverage and centralisation of insurance policies.

Underwriting profitability is expected to remain sound, supported by strong internal risk management capabilities.

CNPC Captive's health insurance business—22% of its gross written premiums in 2024—continues to face elevated claims, likely keeping margins under pressure in that segment.

The insurer is also expected to continue upstreaming about 40% of net income to the parent group.