Good underwriting, investments boost Taiwan's Shinkong Insurance in 2020
Its capital and surplus have grown 43% over the past five years.
Taiwan’s Shinkong Insurance maintained smooth-sailing operating results in 2020, anchored by positive underwriting and investment results, according to an AM Best report.
The insurer’s risk-adjusted capitalisation remained at the strongest level in 2020. In the past five years, its capital and surplus has grown organically by 43%, mainly through profit retention and accumulation of special reserves. Investment strategy is still conservative with a majority of the invested assets in low risk fixed-income assets.
The company’s dependency on reinsurance remains moderate, with the reinsurers panel in good credit quality.
Shinkong is still the country’s third-largest non-life insurer in terms of gross written premiums, recording a net combined ratio of almost 90% over the past few years. Its underwriting portfolio remains diverse, having refined it in 2020 through faster expansion in non-motor product lines.
A partially offsetting factor is the downward trend in the insurer’s compulsory auto liability insurance special reserves over the past few years. Going forward, potential unfavourable underwriting experience in this line of business will directly affect operating performance.