China Ping An Insurance's leverage weakens its standing against peers: AM Best

Better claims management helped improve underwriting margins from 2024.

China Ping An Insurance (Hong Kong) Company Limited’s (CPAHK) capital position is expected to remain at that level over the short to intermediate term. 

The insurer also benefits from a prudent investment portfolio and appropriate reinsurance arrangements, although these are partly offset by its modest capital base and relatively high underwriting leverage compared with domestic non-life peers, according to an AM Best note.

AM Best also said CPAHK's balance sheet strength is supported by the strongest level of risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), in 2024 and 2025. It expects the company's 

CPAHK returned to profit in 2024 and remained profitable in 2025, posting a return on equity in the mid-single digits in both years. 

AM Best said earnings were supported mainly by stable investment returns, whilst underwriting margins improved from 2024 as the company strengthened claims management and benefited from reinsurance support from Ping An P&C.

CPAHK expects its international business to support further growth in premium income and profitability.