Hong Leong Insurance seen to expand commercial lines

Capital is expected to continue to be supported by underwriting profits and investment income.

Hong Leong Insurance (Asia) Limited is seen to grow from a small base in Hong Kong’s general insurance market, with expansion in commercial lines, cross-selling to its personal lines customers, and further digitalisation of underwriting and claims to support retention and efficiency, according to AM Best.

AM Best also expects HLIA’s balance sheet to remain very strong, supported by risk-adjusted capitalisation that was at the strongest level as of the fiscal year ended 30 June 2025, based on Best’s Capital Adequacy Ratio. 

Capital is expected to continue to be supported by underwriting profits and investment income, although this could be partly offset by dividends to its parent, reliance on reinsurance and exposure to real estate investments.

AM Best also expects operating performance to stay solid. 

In FY 2025, growth was driven by a recovery in property damage and general liability lines, whilst investment gains, mainly from equity fair value increases, contributed significantly to net profit.

Looking ahead, the agency expects more stable expense ratios and a gradual shift in the investment portfolio toward fixed-income assets.