Taiping Reinsurance sees stable investment income despite losses: AM Best

TPRe’s capital position stayed at the strongest level in 2024.

Taiping Reinsurance (TPRe) is expected to keep strong capital and steady earnings in the near term, backed by its parent company China Taiping Insurance Holdings (CTIH), according to AM Best. 

TPRe’s capital position stayed at the strongest level in 2024 and is expected to remain solid. 

The company has shown flexibility in raising funds and last December sponsored Asia’s first dual-peril, dual-trigger catastrophe bond to boost its risk protection.

In 2024, TPRe posted a net profit of $123.25m (HK$957.4m) with a return on equity of 8.3%. Its non-life business improved, with a combined ratio of 92.7%, whilst life business made only a small contribution. 

Investment income was stable, though impairment losses continued to weigh on results.

AM Best expects CTIH to keep supporting TPRe, which holds a leading role in Hong Kong and Macau’s non-life reinsurance market and is looking to expand in mature markets and specialty lines.