BOCG Insurance expected to sustain strong growth and capital base

But it noted that its large holdings in associated companies add some risk.

Bank of China Group Insurance Company Limited (BOCG Insurance) is expected to maintain steady growth and strong capitalisation, supported by solid underwriting performance, favourable investment income, and its close ties with the Bank of China Group, according to AM Best.

The Hong Kong-based insurer ended 2024 with its risk-adjusted capitalisation at the strongest level, aided by higher capital and surplus, and a robust solvency ratio under Hong Kong’s Risk-Based Capital framework. 

AM Best expects the company to sustain its financial strength, though it noted that its large holdings in associated companies (about one-third of its investment portfolio) add some investment concentration risk.

BOCG Insurance recorded organic revenue growth and stronger net income in 2024, achieving a double-digit return on equity and four straight years of underwriting profit. 

Growth was driven by investment returns, profit contributions from associated companies, and interest and dividend income.

AM Best also stated that BOCG Insurance is expected to leverage the Bank of China’s branch network and brand to generate further profitable business.