Investment stability anchors Taiping Reinsurance despite impairments

In 2023, TPRe recorded a net profit of $42.74m.

Taiping Reinsurance Company in Hong Kong (TPRe) holds a very strong balance sheet, adequate operating performance, a neutral business profile, and effective enterprise risk management, according to AM Best. 

AM Best also acknowledged the support provided by TPRe’s parent company, China Taiping Insurance Holdings Company (CTIH), in terms of capital, investment, and operational resources.

At the end of 2023, TPRe’s risk-adjusted capitalisation remained at the highest level, according to Best’s Capital Adequacy Ratio (BCAR). 

AM Best expects TPRe’s capitalisation to remain strong in the near term, bolstered by financial flexibility and a better credit profile in its investment portfolio. However, potential challenges include exposure to catastrophe risks and legacy investments in volatile markets.

In 2023, TPRe recorded a net profit of $42.74m (HK$333m), with a 3% return on equity under HKFRS 17. 

The company’s non-life insurance results remained steady, particularly in property lines, with a combined ratio of 95.9%. 

The life insurance segment showed volatility as TPRe shifted from saving-type to protection-type reinsurance. 

The overall investment performance remained stable, driven by interest income from fixed-income investments, though partially offset by asset impairments.

Leveraging its position as a subsidiary of CTIH, TPRe holds a strong presence in Greater China and is a market leader in non-life reinsurance in Hong Kong and Macau. 

The company continues expanding into emerging markets, with a focus on Southeast Asia and has collaborated with strategic investor Ageas on product development. 

AM Best expects CTIH to maintain its financial support for TPRe, as demonstrated by past capital injections.

($1.00 = HK$7.79)