Huatai P&C profitability improves as claims experience stabilises

Fitch expects the synergy between Chubb and Huatai P&C to strengthen over time.

China-based Huatai Property & Casualty Insurance Co., Ltd. (Huatai P&C) is projected to maintain a stable outlook, thanks to its solid capital position, strong financial performance, and moderate company profile, Fitch Ratings said. 

The assessment also considers the company's use of reinsurance to manage catastrophe exposure and expand underwriting capacity.

Huatai P&C benefits from its ownership by Chubb Limited, which held an 85.5% stake in Huatai Insurance Group Company Limited as of February 2025. 

Fitch expects the synergy between Chubb and Huatai P&C to strengthen over time, supporting operational integration and potential financial assistance if needed. 

Huatai P&C's financial performance remains strong, with its combined ratio improving to 94.7% for the first nine months of 2024 from 102.3% in 2023. 

The improvement was driven by a lower expense ratio and stable claims experience, with underwriting results expected to benefit further from Chubb’s disciplined risk management and actuarial support. 

However, profitability remains exposed to investment volatility due to the insurer’s holdings in equity markets and alternative assets.

Looking ahead, Huatai P&C's financial stability will depend on maintaining strong underwriting discipline and managing capital efficiently, Fitch Ratings added.