AM Best says Shinkong Insurance to sustain strong profits

The insurer accounted for 16.4% of Taiwan’s domestic non-life sector.

Shinkong Insurance Company is expected to sustain sturdy profits, aided by strong underwriting results and consistent investment income, AM Best said.

Shinkong Insurance delivered solid net technical results over the past two years, outperforming historical trends and peers. 
Its 2024 net income accounted for 16.4% of the total profits in Taiwan’s domestic non-life insurance sector, the highest in the industry. 

AM Best noted a five-year average return on equity of 13.1%, and a 2024 return on premium of 20.6%, both of which exceeded industry averages.

The company’s risk-adjusted capitalisation remains at the strongest level, supported by organic earnings growth and a healthy statutory risk-based capital ratio, despite dividend payouts in 2024. 

Its capital strength is further backed by a conservative investment strategy and a comprehensive reinsurance program with well-rated partners.

With profitability metrics outperforming most domestic peers and a stable capital base, the revised credit outlook reflects AM Best’s view that Shinkong Insurance is well-positioned to maintain strong operating performance over the near term.