APAC’s biggest insurers show strong capitalisation: Fitch Ratings

They also meet the regulatory solvency and financial leverage criteria for high ratings.

Major life insurers in Asia-Pacific (APAC) have exhibited robust capitalisation and leverage, Fitch Ratings reported. 

China Life has relatively lower capitalization due to increased asset risk according to the Fitch Prism Model.

These insurers are known for their well-established brands, marked by leading franchises, strong market positions, extensive operations, diversified product portfolios, and broad geographic coverage. This solid brand recognition ensures a consistent flow of new business.

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They also meet regulatory solvency and financial leverage criteria for 'A' and 'AA' ratings in Fitch's insurance standards.

Furthermore, the peer group consistently demonstrates 'Very Strong' financial performance, benefiting from sustainable profitability. 

They maintain substantial in-force books of business with a long track record of success, with the exception of FWDGHL, which has a relatively shorter operating history. 

Despite this, these insurers maintain resilient and profitable operations. Their new business value margins tend to remain stable and favourable compared to smaller domestic firms.