China P&I posts steady profits with strong reinsurance support: AM Best

It is also seen to sustain stable earnings.

China Shipowners Mutual Assurance Association (China P&I) is expected to maintain strong capitalisation and stable earnings, supported by low underwriting leverage and steady retained profits, according to AM Best.

The Club’s capital and surplus grew moderately in 2024, helped by positive investment returns and controlled underwriting losses. 

AM Best projects its capital adequacy to remain at the strongest level in the near term.

Despite increased claim in 2024, China P&I maintained a five-year average return-on-equity of 4.4%. 

Investment yield was steady at 5.0%, largely driven by its long-term stake in China Minsheng Banking Corp., which accounts for about 70% of total investments. 

Whist this concentration remains a risk, it is balanced by prudent reserving and a strong reinsurance programme.

The Club is also expanding overseas, particularly in Southeast Asia, whilst maintaining its core focus on Chinese-owned ocean-going vessels.