Ping An P&C's favourable business profile in China's insurance market – AM Best

AM Best assessed Ping An P&C to have a favourable business profile.

Ping An Property & Casualty Insurance Company of China, (Ping An P&C) maintains its competitive advantage in motor insurance, which has continued to deliver favourable underwriting profit, supported by strong control over distribution channels, data-driven underwriting know-how, and automated claims processing, perceived AM Best.

The insurer is seen to have a solid outlook. Firstly, Ping An P&C demonstrates very strong balance sheet strength, supported by its robust risk-adjusted capitalization measured by Best’s Capital Adequacy Ratio (BCAR). 

The company's consolidated capital and surplus have shown continuous growth, reaching $17.32b at year-end 2022, with a compound annual growth rate of 11.3% over the five-year period from 2018 to 2022. 

Other supporting factors include its vast liquid and diversified investment portfolio dominated by bonds or funds, healthy regulatory solvency position, and good financial flexibility.

Secondly, Ping An P&C has a strong operating performance, characterized by good and better-than-average profitability, with a five-year average return on equity of 16.2% from 2018 to 2022. 

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Although the company experienced its first underwriting loss in over a decade in 2022 due to the deterioration of its credit and guarantee line, it has actively reduced exposure in this product line and ceased underwriting new policies since November 2023. 

Ping An P&C has a favourable business profile, supported by its sizeable insurance portfolio, diversified channels, and geographic span in China, as well as strong brand recognition. The company is the second-largest non-life insurer in China, with approximately 20% of the market share based on 2022 non-life direct written premiums. 

Its strong brand recognition in the domestic market, particularly in motor insurance, contributes significantly to its business profile. Ping An P&C is also actively expanding its non-motor lines and harnessing new technologies to improve business efficiency and risk management.