South China Insurance capital rises to $298m

AM Best said underwriting performance is likely to remain steady.

AM Best expects South China Insurance’s financial position to remain stable in the near to medium term.

The ratings reflect AM Best’s view that South China Insurance’s balance sheet strength will continue to be supported by strong capitalisation and steady earnings. 

The insurer’s risk-adjusted capitalisation, measured by Best’s Capital Adequacy Ratio, remained at the strongest level at the end of 2024 and is expected to stay supportive over the short to intermediate term.

AM Best said the company’s adjusted capital and surplus, including special reserves for its non-compulsory motor business, rose moderately through 2024 and the first nine months of 2025 to TWD9.77bn ($298m). 

Profit growth from underwriting and investments was the main driver, partly offset by dividend payments. 

The insurer’s investment portfolio is expected to remain liquid and diversified, with a focus on investment-grade bonds and cash, whilst currency risk is managed through hedging.

AM Best said underwriting performance is likely to remain steady, underpinned by motor and casualty business, after the insurer recorded low single-digit growth in gross premiums written in 2024.