Hotai Insurance outlook steady with capital buffers and parent support

Net profit reached $62.7m (NT$1.9b) in 2024.

Hotai Insurance is expected to keep strong capitalisation and steady earnings in 2025, supported by favourable underwriting, investment results, and backing from parent company Ho Tai Motor Co, AM Best said.

The insurer’s capital and surplus rose to $211.2m (NT$6.4b) in 2024 from $141.9m (NT$4.3b) in 2023, with projections showing capital levels will remain strong this year despite investment losses in early 2025.

Net profit reached $62.7m (NT$1.9b) in 2024, with AM Best expecting stable earnings as pandemic-related losses in 2022 are considered a one-off.

Hotai has also strengthened its risk management, tightening underwriting for new products and factoring infectious diseases into catastrophe risk models.

Market share has grown, moving from eighth in 2020 to sixth in 2024, driven by its motor business and supported by Ho Tai Motor’s dealer network.

With continued support from its parent, Hotai Insurance is expected to sustain balanced growth and maintain a solid financial position over the medium term.