Chow Tai Fook boosts CTF Life's brand in Hong Kong: Fitch Ratings

This move contributed to a market share increase to 2.7% in the first half of 2024.

Chow Tai Fook Life Insurance Company Limited's (CTF Life) has shown strong capitalisation, a moderate company profile, and good financial performance, assessed Fitch Ratings.

CTF Life, formerly known as FTLife Insurance Company Limited, has benefited from its rebranding under Chow Tai Fook Group following a 61% stake acquisition by Chow Tai Fook Enterprise Limited in November 2023. 

This move enhanced its brand recognition in Hong Kong and China, contributing to a market share increase to 2.7% in the first half of 2024, up from 2.1% in the same period last year.  

Its Hong Kong risk-based capital ratio rose to 289% in the fiscal year ended June 2024 (FY 2024), compared to 261% in FY 2023, well above the 100% regulatory minimum. 

The absence of debt further bolsters its capital structure.  

Despite strong business growth reflected in a rising annualised premium equivalent, CTF Life reported a decline in its value of new business (VNB) margin due to a shift in product mix. 

However, return on equity improved to 6.1% in FY 2024 from 5% in FY 2023, aided by insurance results under the HKFRS17 accounting standard.