bolttech maintains a low investment risk profile: Fitch Ratings

Its local solvency ratio was 509% at the end of 2023.

boltech Insurance's financial performance was assessed as robust, with its insurance service result rising to HK$54m in 2023 from HK$29m in 2022 due to lower insurance service expenses and favourable underwriting performance, partly driven by reserve releases. The insurer's average return on equity was 5% for 2022-2023. 

Profitability in 2022 was impacted by substantial IT investments, expected to taper off by mid-2024.

Fitch considers bolttech's company profile 'moderate' within Hong Kong's non-life insurance sector, holding a 1.3% market share by gross premiums in 2023. 

Its primary business lines include accident and health, property damage, and general liability.

bolttech's capital adequacy is strong, supported by low investment risk and stable growth. The local solvency ratio was 509% at the end of 2023, far exceeding the regulatory preferred level of 200%.

The company relies on reinsurance to boost underwriting capacity and manage risk. It faces credit risk from a reinsurer lacking an international credit rating, but the exposure is less than 7% of total net assets, which is stricter than the 10% regulatory requirement.