COSCO SHIPPING Captive Insurance outlook stable with strong capital base

The company plans to maintain a fixed-income focused portfolio.

COSCO SHIPPING Captive Insurance Co., Ltd. is expected to have stable premium growth and sustained profitability, supported by strong capitalisation and a conservative investment strategy, AM Best said.

The insurer, which mainly writes marine hull business for parent group China COSCO SHIPPING and its affiliates, has delivered consistent profits since 2017 with an average return-on-equity of 5.2% over the past five years. Its 2024 investment yield was 3.6%.

Capital and surplus have grown steadily, underpinned by low underwriting leverage and prudent reinsurance. 

The company plans to maintain a fixed-income focused portfolio whilst gradually diversifying into equities.

AM Best said the outlook is stable, though earnings could face volatility due to a small premium base and exposure to high-severity risks.