Luen Fung Hang Insurance expected to maintain steady performance

LFH benefits from strong bancassurance distribution.

Luen Fung Hang Insurance Company (LFH) is expected to maintain steady growth and profitability, backed by strong capital, consistent underwriting results, and a conservative investment strategy, AM Best said.

The Macau-based insurer ended 2024 with stable results despite flat gross premiums written. 

Its underwriting remained profitable, with a below-industry loss ratio and a five-year average combined ratio of 60.1%. 

LFH’s investment portfolio continues to generate steady income, whilst profit retention has strengthened its capital position, the ratings agency said.

Holding over 20% of Macau’s non-life market, LFH benefits from strong bancassurance distribution through its bank shareholders. 

Whilst its business remains concentrated in Macau, its fire and medical lines provide moderate diversification.

AM Best expects LFH to maintain strong performance and a solid balance sheet under a stable outlook.