KBFG Insurance investment returns seen to drive operating results

AM Best said capital strength remains a core advantage entering 2026.

KBFG Insurance (China) Co., Ltd. (KBFG China) is implementing a new strategic plan to regain business momentum after seeing its top-line performance decline for a third consecutive year in 2025. 

The company’s underwriting profitability has remained stable, supported by low acquisition costs and positive reinsurance commission income, according to AM Best. 

Stable investment returns are expected to remain a key contributor to KBFG China’s overall operating results.

The recent dip in premium volume was driven by lower client exposures and rate reductions following a period of favourable loss experience. 

Despite the shrinking top line, KBFG China maintained steady underwriting profits. 

This stability was supported by low costs to acquire new business and income earned from reinsurance commissions.

The company’s financial health remains a core strength as it enters 2026. 

Its statutory core solvency ratio saw a significant jump, rising from 501% in 2024 to 671% by the end of 2025. 

This improvement was due to the planned settlement of large reinsurance recoverables. 

AM Best expects that consistent investment returns will continue to be a primary driver of the company's overall operating results moving forward.