Hyundai Insurance targets profit as past growth strains capital reserves

AM Best expects moderate revenue gains and further portfolio improvement.

Hyundai Insurance (China) Co., Ltd. (HIC) will likely have a better outlook in the medium term, with expectations that the Chinese insurer will execute its latest business plan without material deviation, delivering earnings improvements alongside controlled top-line growth whilst maintaining a very strong balance sheet.

AM Best assessed HIC’s balance sheet strength as very strong. Measured by Best’s Capital Adequacy Ratio, the firm's risk-adjusted capitalisation stood at the strongest level at year-end 2025 and is projected to hold that level over the next three years.

Following shareholding changes in 2020, rapid expansion across HIC’s insurance portfolio resulted in consecutive years of operating losses, which placed downward pressure on its capital reserves. 

However, the company shifted its focus to ride-sharing motor insurance in 2023, making progress in underwriting transformation and meeting its financial targets. 

AM Best expects moderate revenue growth and further underwriting improvements to continue.

HIC's overall operating performance remains marginal, supported by steady investment income from cash and fixed-income holdings. 

The company has progressively reduced underwriting losses by expanding scale and improving portfolio controls, with management projecting a return to underwriting profitability within the next three years.
Whilst HIC has secured a good standing in the niche ride-sharing motor insurance sector in certain operating regions, it remains a small to medium-sized player in China’s overall non-life market. 
AM Best expects its broader market presence to remain limited over the short to intermediate term. The agency also evaluated HIC’s enterprise risk management as appropriate.