Reinsurance strength helps CTPI HK absorb major fire losses

AM Best projects that CTPI HK’s capital position will remain solid.

China Taiping Insurance (HK) Company Limited (CTPI HK) is expected to maintain a steady performance in the coming years, supported by a strong balance sheet and a diversified business portfolio, AM Best said.

Despite a recent major fire at Hong Kong’s Wang Fuk Court residential complex, the insurer is anticipated to handle claims without significant disruption to its operations, thanks to robust reinsurance arrangements and ample liquidity.

AM Best projects that CTPI HK’s capital position will remain solid over the short to intermediate term. 

Whilst the fire will affect the company’s underwriting results in the near term, net losses retained by the insurer are expected to be manageable, and investment income should continue to underpin the bottom line. 

The company’s underwriting margin is likely to stay thin, reflecting the competitive nature of Hong Kong’s general insurance market, where CTPI HK held a 5.1% market share in 2024.

Looking ahead, AM Best expects CTPI HK to maintain its market position and focus on growing domestic direct business, whilst continuing to benefit from support and integration within the China Taiping Insurance Group.