China Re maintains strong capital position over short to medium term

AM Best highlighted that China Re’s investment mix has stayed largely stable.

China Reinsurance (Group) Corporation (China Re) will maintain a strong capital position and stable business performance over the short to medium term, according to AM Best, which noted that the group’s capital base and earnings profile continue to support its growth plans.

AM Best said China Re’s consolidated capital and surplus rose 10.3% in 2024 to $15.4b under IFRS 17 and IFRS 9, driven by favourable operating earnings. 

The group’s risk-adjusted capitalisation also remained at the strongest level based on Best’s Capital Adequacy Ratio. 

The rating agency expects this level of capital strength to remain supportive as China Re expands its underwriting and investment risks.

The group is projected to maintain good financial flexibility, with continued access to equity and debt markets and low to moderate financial leverage. 

AM Best highlighted that China Re’s investment mix has stayed largely stable, with sufficient liquidity to support operations.

AM Best expects underwriting performance to stay steady, supported by improved results in the non-life business. 

Earnings from overseas non-life reinsurance – mainly through Chaucer– remain a key driver of profitability, while the domestic non-life segment continues to produce stable but thin margins.

The life reinsurance segment, however, is expected to see modest growth as China’s life market undergoes structural changes.

China Re is also expected to retain its leading position in China’s P&C and life reinsurance markets, with overseas operations continuing to strengthen the group’s global footprint. 
AM Best noted that the group’s business mix remains well diversified across segments and geographies.