Nonghyup P&C maintains capital well above regulatory minimums despite pressure

AM Best said it expects it to keep its capital levels well above regulatory minimums.

NongHyup Property and Casualty Insurance Company Limited (NH P&C) is expected to maintain a solid solvency position and stable earnings over the near term, with AM Best highlighting the insurer’s strong capital base and continued support from its parent groups as key factors underpinning its outlook.

AM Best said it expects NH P&C to keep its capital levels well above regulatory minimums despite recent pressure on its Korean-Insurance Capital Standards (K-ICS) ratio, which declined in 2024 and the first half of 2025 following regulatory guideline changes. 

The insurer’s capital strength remains “strongest” on the BCAR measure, and AM Best noted that future solvency should be supported by improved asset-liability management and the company’s good access to capital markets. 

Financial flexibility is further reinforced by backing from NongHyup Financial Group and the National Agricultural Cooperative Federation.

Looking ahead, AM Best said it will closely monitor NH P&C’s ability to improve new business contractual service margin growth.