Prudent underwriting boosts Shinkong's claims experience: AM Best

The company saw a double-digit growth in capital and surplus in 2023.

Shinkong Insurance carries a robust balance sheet strength, satisfactory operating performance, neutral business profile, and effective enterprise risk management (ERM), analysed AM Best.

The positive outlook for the Long-Term ICR reflects Shinkong Insurance's consistent profitability despite challenges from the COVID-19 pandemic and market volatility. 

The company's prudent underwriting strategy, favourable claims experience, and disciplined expense management have contributed to its success. 

Additionally, Shinkong Insurance reported improved investment results in 2023, with stable interest and dividend income and reduced capital losses.

The company maintains strong risk-adjusted capitalisation, with double-digit growth in capital and surplus in 2023. 

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Its investment portfolio is stable and liquid, with a moderate reinsurance dependency and a healthy risk-based capital ratio.

Shinkong Insurance, the third-largest insurer in Taiwan's non-life insurance market, exhibits moderate portfolio diversification, primarily focusing on motor insurance. 

Its distribution channels remain stable, with direct channels being the primary contributor. 

The company demonstrates prudent ERM practices in product development and distribution, particularly in pandemic-related insurance products.