CPIC Life HK strengthens growth outlook with Moody’s forecast

Its pursuit for strong premium growth from a low base will likely to reduce its capital coverage ratio.

China Pacific Life Insurance (H.K.) Company Ltd (CPIC Life (HK)) is expected to maintain a solid capital buffer as it expands its business and gradually improves profitability over the next 12 to 18 months, according to Moody’s Ratings.

The insurer is pursuing strong premium growth from a low base, which is likely to reduce its capital coverage ratio from over 200% at end-2024. 

However, support from parent CPIC Life and CPIC Group is expected to keep capital well above regulatory minimums.

CPIC Life HK’s reliance on participating products, which are sensitive to interest rate shifts, will continue to pressure margins. 

The company will also remain dependent on independent brokers, limiting control over distribution and product mix.

Profitability is likely to stay weak due to the insurer’s small scale and new business strain. It posted its first net profit of HK$6m in 2024, but earnings remain sensitive to market movements.